When does Basecamp Fitness recognize accrued expenses, according to the FDD?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company recognizes accrued expenses when the obligations are incurred, even if they have not yet been invoiced. These accrued expenses are typically settled in the normal course of business.

This accounting practice means that Basecamp Fitness records expenses as they are incurred, regardless of when the actual payment is made. This provides a more accurate picture of the company's financial obligations at any given time. For a potential franchisee, understanding this accounting practice can be important for interpreting Basecamp Fitness's financial statements and assessing the company's financial health.

Accrued expenses and other current liabilities consist of items such as sales tax payables, customer deposits, and accruals for general operating and payroll-related expenses. This indicates the types of short-term obligations Basecamp Fitness typically has on its books. Knowing when and how these expenses are recognized helps in understanding the company's overall financial management and reporting practices.