How does the requirement for Basecamp Fitness franchisees to meet specifications for equipment, furnishings, and signs in Item 8 relate to the franchisor's assistance in Item 11?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
All equipment, furnishings, fixtures, signs, software, software support and security monitoring, supplies, branded items, marketing, maintenance services, insurance and products you purchase for use or sale in your Basecamp Studio must meet our specifications. Additionally, all membership types you offer as well as workouts provided through your Basecamp Studio must meet our specifications and, where allowed by applicable law, comply with our pricing guidelines. Those specifications may include minimum standards for delivery, performance, design, appearance, and quality. We will issue the specifications to you before you begin operating. We may include these specifications in the manual that we provide to you online, or we may issue them separately. While we do not have specifications for local advertising you create to promote your studio, we do require that you obtain our prior approval at least 4 weeks before you use any advertising materials you prepare. You may not establish or have established any digital or electronic medium or method of communication, including a website, web page, review or opinion page, social media and/or social networking site, channel, avatar, profile, including an online business profile, account, hashtag, user name or application, whether web-based or otherwise, or keyword advertising, pay-per-click
advertising or other search engine marketing, relating to or making reference to us, your Basecamp Studio, or to the Basecamp Fitness System without our approval. We reserve the right to refuse, reject, adjust or require changes to any advertising material you prepare. You must provide us with full admin access (including with log-in information) to all social media accounts, profiles and pages, business managers, and ad accounts related to your Basecamp Studio or that use our marks. You must provide ownership-level access to any Google Business profiles.
You can expect that the items you purchase to meet our specifications will represent over 90% of the total purchases you will make to begin operations. Once you begin operating, we expect the items you purchase that meet our specifications will represent between 70% and 90% of your total expenses.
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
Before you open your Basecamp Studio, we will:
- (1) Once you have chosen a site location for your Basecamp Studio, either approve or disapprove that location (Franchise Agreement – Section 1.C).
- (2) Once we approve a site location for your Basecamp Studio, provide you with a Protected Territory for your studio (Franchise Agreement – Section 1.E).
- (3) Provide you online access to our operations manual that contains mandatory and suggested specifications, standards and procedures (the "Operations Manual"). The Operations Manual consists of one or more manuals, technical bulletins or other written materials available electronically and may be modified by us periodically in our discretion. (Franchise Agreement – Sections 8, 9). The manual currently contains 25 pages. A copy of the table of contents of the Operations Manual is attached to this Disclosure Document as Exhibit B.
- (4) Provide you with a prototype floor plan, as well as a list of the equipment, displays, fixtures and furnishings for setting up or remodeling your studio (Franchise Agreement – Section 8.B).
- (5) As discussed in Item 5, provide you with a Compliance Drawing for your Basecamp Studio (Franchise Agreement – Section 8.C). If, however, you would like additional Compliance Drawings, you must pay us a $250 fee per Drawing.
- (6) You must retain our designated architectural vendor to create a complete set of detailed Construction Documents. If we allow you to use a vendor other than our designated architectural vendor for the creation of your Construction Documents, we will review your Construction Documents at your cost (Franchise Agreement – Section 8.D).
- (7) Provide the New Franchisee Training Program for you, or if you are a legal or business entity, a Principal Owner, a Principal Operator (if applicable) and your studio manager. (Franchise Agreement Section 8.E.). See below for additional information on the New Franchisee Training Program and other training.
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
- (8) Sell to you, or have our affiliate sell to you, a variety of items to operate and promote your Basecamp Studio, including the items included in our Retail Product Package, the Build-Out Package, and the Technology & Fitness Equipment Package, and various other items described in the Operations Manual. (Franchise Agreement – Section 6.A., 7.A and 8.R.).
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
You must purchase from our affiliate, ProVision, a Technology & Fitness Equipment Package that includes fitness equipment and various technology equipment and systems you need to operate your Basecamp Studio. These systems include network hardware, and security systems, iPads, tablet devices, computers, audio and video systems, software and other related components, a point of sale system and software and cloud based technology. You will use these systems for marketing and sales, business intelligence, studio management, fitness programming, communications with us and other studios, web integration, online team collaboration, and to manage your social content, reviews and advertisements. ProVision will provide you with technology support, monitoring, and installation services for your Basecamp Studio. The cost to purchase the Technology & Fitness Equipment Package ranges from $100,480 to $127,430. This includes the cost of taxes, shipping and installation which we estimate is approximately 40% of the package price. You will pay ProVision a one-time set-up fee and a monthly fee for these technology solutions. The setup fee is $500 and the monthly Technology fee is $799. This package and the monthly fee do not include music licensing fees which you will pay to us as a separate music licensing fee, nor do they include other third party services like fitness equipment maintenance, telephone or internet service. We may require you to upgrade or update the computer and technology system (including hardware and software) during the term of the franchise and we anticipate that you will be required to do so.
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Item 8 outlines the restrictions on sources of products and services, stating that all equipment, furnishings, fixtures, signs, software, supplies, branded items, marketing, maintenance services, insurance and products must meet Basecamp Fitness's specifications. These specifications include minimum standards for delivery, performance, design, appearance, and quality, and are issued to the franchisee before they begin operating, either in the operations manual or separately. Franchisees can expect that over 90% of their initial purchases and 70% to 90% of ongoing expenses will be on items meeting these specifications.
Item 11 details the assistance Basecamp Fitness provides to franchisees. Before opening, Basecamp Fitness will approve the site location, provide a protected territory, and grant online access to the operations manual containing mandatory and suggested specifications, standards, and procedures. They also provide a prototype floor plan and a list of required equipment, displays, fixtures, and furnishings. Basecamp Fitness also provides a Compliance Drawing for the studio, but additional drawings cost $250 each. Franchisees must use Basecamp Fitness's designated architectural vendor for construction documents, or pay for Basecamp Fitness to review documents from another vendor.
Furthermore, Basecamp Fitness will sell or have their affiliate sell items to operate and promote the Basecamp Studio, including items in the Retail Product Package, Build-Out Package, and Technology & Fitness Equipment Package. Specifically, franchisees must purchase a Technology & Fitness Equipment Package from ProVision, Basecamp Fitness's affiliate, which includes fitness equipment, network hardware, security systems, iPads, computers, audio and video systems, software, a point of sale system, and cloud-based technology. The cost of this package ranges from $100,480 to $127,430, including taxes, shipping, and installation. Franchisees also pay ProVision a $500 setup fee and a monthly technology fee of $799, which does not include music licensing fees or third-party services.
In summary, the specifications outlined in Item 8 are directly supported by the assistance detailed in Item 11. Basecamp Fitness provides franchisees with the necessary information, resources, and approved vendors to ensure they meet the brand's standards for all required products and services. This includes providing detailed specifications in the operations manual, offering pre-approved packages for equipment and technology, and mandating the use of specific vendors for architectural and construction needs. This coordinated approach ensures brand consistency and quality across all Basecamp Fitness locations.