Can Basecamp Fitness require franchisees to purchase certain items from preferred vendors?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
r specifications and quality standards. We do not impose any fee for our consideration of an item not previously approved.
We may require you to purchase certain furniture, equipment, inventory, supplies, services and other products used or offered at your studio from vendors we approve, in which case we will provide you with a list of approved suppliers. These will include mandatory vendors (persons from whom you must purchase certain items or services), designated vendors (for items or services that must be purchased from vendors we approve), and preferred vendors (for vendors we have approved, but in categories where we do not require you obtain our approval of the vendor). These suppliers may pay vendor rebates to us and they may include our company and affiliates of ours. We may modify our mandatory, designated, and/or preferred vendor(s) at any time. We may require you to offer additional services or products and some of those products or services may require that you purchase additional equipment or training for your staff.
When we have a designated vendor (other than a mandatory vendor), if you want to purchase from other vendors the items or services for which that vendor has been designated, you must notify us in writing and obtain our approval. If you seek approval of a new supplier (or if the supplier applies directly to us for approval), we will require the supplier pay us a nonrefundable fee of $300 before we will consider approving their application. This fee is intended to defer our cost of reviewing the supplier. (We do not require you to pay any fee.) We may also require the supplier to sign a supplier agreement with us.
In reviewing prospective suppliers, we consider whether the product or service is consistent with our concept and brand; how they and/or their products or services would enhance our brand and make it more attractive to members and other customers or franchisees; how the product or service would improve the studio experience of a member; how the product or service would increase revenue of a franchisee's business; how the product or service would increase the efficiency of a franchisee; if the product or service is already available through other sources, would approval of another vendor enhance competition or dilute our ability to maximize pricing benefits for our franchisees; is the product of a commercial quality with a proven record of durability; does the supplier support our values; and other factors. In addition, we consider demand from franchisees, the need for the vendor based on business trends, and the ability of the vendor to serve franchisees throughout the United States. (The criteria is posted on our website for potential vendors and franchisees.) We will generally notify you and the supplier of our approval or disapproval within 2-12 months of our receipt of all the information and samples we request. If we revoke approval of any supplier or any item offered by a supplier, we will send you written notice of our revocation of an approved supplier or item.
As of the issuance date of this Disclosure Document, we have the following sole suppliers in our System:
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, franchisees are often required to purchase items from specific vendors. Basecamp Fitness may require franchisees to purchase certain furniture, equipment, inventory, supplies, services, and other products from approved vendors. These vendors can be mandatory, designated, or preferred. Mandatory vendors are those from whom franchisees must purchase certain items or services. Designated vendors are those approved by Basecamp Fitness for specific items or services. Preferred vendors are approved vendors in categories where franchisees are not required to obtain approval for the vendor they choose. Basecamp Fitness can modify these vendor designations at any time and may also require franchisees to offer additional services or products, potentially necessitating further equipment purchases or staff training.
The FDD also states that supplies for a Basecamp Fitness studio must be purchased from designated vendors. Basecamp Fitness is currently a designated vendor for business supplies and marketing materials, and they or their affiliates may become mandatory, designated, or preferred vendors for other items in the future. The franchisee is expected to purchase items meeting Basecamp Fitness's specifications, representing over 90% of initial purchases and between 70% and 90% of ongoing expenses. If a franchisee wishes to purchase items from non-approved vendors, they must seek written approval from Basecamp Fitness.
Basecamp Fitness also has sole suppliers for certain items. As of the issuance date of the 2025 Disclosure Document, Basecamp Fitness or a third party is the sole supplier for items logo'd with their Marks, including branded mobile applications, retail products for resale, workout formats, and fitness programming. Franchisees must purchase the Build-Out Package from Basecamp Fitness, which includes items like signage, marketing materials, furniture, and fixtures that must be purchased from sole third-party suppliers. ProVision, an affiliate, is the sole supplier for certain fitness equipment, technology services, technology, network hardware, and security systems, all included in the Technology & Fitness Equipment Package that franchisees must purchase. Additionally, Basecamp Fitness has a sole supplier for studio management, billing, payment, and scheduling software that franchisees must use.