What was the reported value of deferred revenue for Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Variable Funding Notes | | 15,000 | - | | Less: Unamortized financing costs | | (15,961) | (5,039) | | Long-term debt, net of financing costs | | 962,827 | 478,749 | | Less: Current maturities | | (7,238) | (3,638) | | Long-term debt, net of current maturities | $ | 955,589 | $ 475,111 | | and financing costs | | | |
The annual principal payment requirements for long-term debt, subject to certain financial conditions set forth in the Indenture, are as follows:
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Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, deferred revenue was reported at $77,151 in 2024 and $44,338 in 2023. These figures are in thousands of US dollars. The increase in deferred revenue from 2023 to 2024 is attributed to a contribution of $27,689 into the Purpose Brands Securitization Entities on April 2, 2024, and the net difference between new sales and the recognition of revenue.
Deferred revenue includes initial franchise fees, ADA fees, area representative fees, master franchise fees, renewal and transfer fees, corporate-owned fitness center and online membership fees, equipment and installations fees, and pre-paid personal training sessions. These revenues are collected upfront but recognized over the term of the franchise agreement. This accounting practice is standard, as it matches the revenue to the period when the service is actually provided or the rights are utilized.
For a prospective Basecamp Fitness franchisee, understanding deferred revenue is crucial because it reflects the financial obligations Basecamp Fitness has to its customers and franchisees for services or rights not yet delivered. The FDD indicates that Basecamp Fitness expects to recognize approximately $17,401 of the deferred revenue in 2025, with the remainder in subsequent years. This provides insight into the company's anticipated revenue stream from existing obligations.