What is the purpose of the General Advertising and Marketing Fund maintained by Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The purpose of the Fund is to develop marketing and advertising programs that maximize general public recognition and acceptance of our brand. This means we may use monies in the Fund for any purpose that promotes the System or the Marks, including the creation, production and placement of consumer advertising; agency costs and commissions; costs of preparing, producing and conducting local, regional or national media of our choice, including: television, radio, Internet, magazine, direct mail and newspaper, billboard, social media and digital advertising, and direct mail campaigns, and other public relations activities; developing and/or hosting, maintaining and optimizing our website, other websites, and other applications or similar activities; implementing keyword or adword purchasing programs; administering regional and multi-regional advertising programs, and other media advertising; in-house staff assistance and related administrative costs; local and regional promotions; public relations campaigns including the cost of retaining public relations firms and other advertising, promotion or marketing agencies; developing marketing and advertising training programs and conducting market research (including sampling) and secret shopper programs; and other advertising, promotion and marketing activities, including participating at trade shows. Advertising may be placed in local, regional or national media of our choice. We do not guarantee that advertising expenditures from the General Advertising and Marketing Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–45)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the General Advertising and Marketing Fund is used to develop marketing and advertising programs that increase public recognition and acceptance of the Basecamp Fitness brand. The fund can be used for various purposes that promote the Basecamp Fitness system and its trademarks. These include creating and placing consumer advertising across different media such as television, radio, internet, magazines, and social media. The fund also covers agency costs, preparing and conducting media campaigns, website development, keyword purchasing programs, and administering regional advertising programs. Additionally, it supports in-house staff, administrative costs, local and regional promotions, public relations, market research, and other marketing activities, including trade show participation.
The franchisor determines how the monies in the fund are spent and directs all advertising and promotional programs. Basecamp Fitness has the sole right to approve creative concepts, materials, media used, advertisement placement, and fund allocation. The FDD specifies that advertising may be placed in local, regional, or national media. However, Basecamp Fitness does not guarantee that advertising expenditures from the fund will directly benefit any franchisee on a pro-rata basis or at all. The franchisor also states that no portion of the fund will be used for advertising designed to solicit the sale of franchises.
As a franchisee, you are required to contribute to this fund. Currently, the contribution is 2% of monthly Gross Revenue, although Basecamp Fitness retains the right to increase this contribution up to a maximum of 3% of monthly Gross Revenue. The franchisor also states that they contribute to the fund at the same percentage rate as franchisees. Prospective franchisees should note that Basecamp Fitness does not have a fiduciary duty regarding the fund's operation or administration. While the franchisor will provide an annual accounting of the fund's expenditures upon request, these statements are unaudited. Understanding how these funds are managed and allocated is crucial for franchisees as it directly impacts brand visibility and marketing efforts.