Can Basecamp Fitness receive vendor rebates from approved suppliers?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
is Disclosure Document, neither we nor our affiliate are the only approved suppliers of any required products and services.
We derive revenue from your purchases or leases of goods, services, supplies, fixtures, equipment, inventory and products from our mandatory, designated or preferred suppliers. This income may be in the form of percentage rebates on the purchases you make from the vendor or fixed amounts on supplies and services. These rebates will generally be up to 15% of the purchases you make from the vendor. There are no caps or limitations on the maximum amount of rebates we may receive from our suppliers as the result of franchisee purchases.
For the fiscal year ended December 31, 2024, we received $102,583 in revenue from the purchase, lease or sale of required goods or services to our franchisees which was 1.97% of our total revenues of $5,198,013. ProVision received $516,320 in revenue from the purchase, lease or sale of required goods or services to our franchisees. SEB Distribution received $111,139 in revenue from the purchase, lease or sale of required goods or services to our franchisees. This information was taken from our and our affiliates' internal financial records. As this information was taken from our an
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness can receive vendor rebates from purchases made by franchisees from mandatory, designated, or preferred suppliers. These rebates may be a percentage of franchisee purchases or fixed amounts on supplies and services. The FDD states that these rebates can be up to 15% of franchisee purchases from the vendor. There are no caps or limitations on the maximum amount of rebates Basecamp Fitness may receive.
For the fiscal year ended December 31, 2024, Basecamp Fitness received $102,583 in revenue from the purchase, lease, or sale of required goods or services to franchisees, which was 1.97% of their total revenues of $5,198,013. ProVision, an affiliate, received $516,320 in revenue from the purchase, lease, or sale of required goods or services to franchisees. SEB Distribution received $111,139 in revenue from the purchase, lease, or sale of required goods or services to franchisees.
This arrangement is common in franchising, where franchisors negotiate with suppliers and receive rebates as a form of revenue. For a prospective Basecamp Fitness franchisee, this means that a portion of their purchases from approved vendors contributes to the franchisor's income. While this doesn't directly impact the franchisee's cost of goods, it's important to be aware of this financial relationship. Franchisees should focus on negotiating the best possible prices with approved vendors, understanding that Basecamp Fitness also benefits financially from these relationships through the rebates they receive.