Regarding a Basecamp Fitness franchise, does the FDD require the franchisee to personally review the Franchise Disclosure Document provided to them?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ios and corporate-owned studios are primarily located throughout the U.S. Consequently, the operations of the Company are affected by fluctuations in the U.S. economy and the respective state and federal regulatory and economic environments. The Company is also affected by fluctuations in the economic environment of the foreign countries in which it maintains license agreements.
Supplier Risk
During the years ended December 31, 2024 and 2023, the Company purchased approximately 53% and 50%, respectively, of all its inventory from 5 vendors.
EXHIBIT I
ELECTRONIC FUNDS TRANSFER AUTHORIZATION
ELECTRONIC TRANSFER OF FUNDS AUTHORIZATION
| QUESTION | YES | NO |
|---|---|---|
| 1. Have you received and personally reviewed the Franchise Disclosure Document | ||
| provided to you? | ||
| 2. Did you sign a receipt (Item 23) for the Franchise Disclosure Document indicating | ||
| the date you received it? | ||
| 3. Have you received and personally reviewed the Franchise Agreement and/or Area | ||
| Development Agreement and each exhibit or schedule attached to it? | ||
| 4. Are you legally eligible to work or own a business in the United States and/or Canada, | ||
| including the state or province in which the Franchise will be located? | ||
| 5. Has any employee or other person speaking on behalf of the Franchisor made any | ||
| statement or representation regarding the actual, average or projected | ||
| memberships, revenues, or profits that you, Franchisor, or any of our franchisees | ||
| have achieved in operating the Franchise, other than what is contained in the | ||
| Franchise Disclosure Document? | ||
| 6. Has any employee or other person speaking on behalf of the Franchisor made any | ||
| promise or agreement, other than those matters addressed in your Franchise | ||
| Agreement, concerning advertising, marketing, media support, market penetration, | ||
| training, support service or assistance or any other material subject relating to the | ||
| Franchise that is contrary to, or different from, the information contained in the | ||
| Franchise Disclosure Document? | ||
| 7. |
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, prospective franchisees are asked to confirm they have personally reviewed the FDD. Item 23 includes a questionnaire for prospective franchisees.
The questionnaire includes the question, "Have you received and personally reviewed the Franchise Disclosure Document provided to you?" This suggests that Basecamp Fitness wants to ensure that franchisees have taken the time to carefully read and understand the document before investing in a franchise.
However, the FDD also states that if a prospective franchisee is a resident of California or the franchise is located in California, they are not required to sign this questionnaire. Furthermore, the questionnaire does not apply to any franchisee residing in or operating in Hawaii, Maryland, or Washington.
This questionnaire serves as a confirmation for Basecamp Fitness that the prospective franchisee has received and reviewed the FDD, which contains important information about the franchise opportunity. Franchisees should be aware of the implications of answering these questions truthfully, as Basecamp Fitness states that they will rely on these answers.