What are the requirements for local advertising expenditures for a Basecamp Fitness franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
arket area on your behalf or place the money in the General Advertising and Marketing Fund. We may require you to implement a local marketing plan that we develop in consultation with you and one of our preferred marketing vendors. We may also require you to pay the $40,000 to us and we will execute the Grand Opening Program.
- C. Local Advertising & Minimum Spend Requirement. In addition to the General Advertising and Marketing Fees, you agree to conduct your own local marketing of your Basecamp Studio. You must spend at least Two Thousand Five Hundred Dollars ($2,500) per month on local advertising (the "Monthly Local Advertising Requirement"), after completion of the Grand Opening Program to promote your Basecamp Studio. These expenditures must be on advertising that we have approved. You must use our preferred or designated vendors for your Grand Opening Program and local marketing services for your Basecamp Studio, which may include us or our affiliates, and we may require you to submit your grand opening plans and local marketing plans for our prior approval, submit proof of purchase or other documentation to verify you have met minimum spend requirements, and show proof of performance of your advertising activity. If you fail to meet the Monthly Local Advertising Requirement in a
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees must conduct local marketing for their Basecamp Studio. After completing the Grand Opening Program, franchisees are required to spend at least $2,500 per month on local advertising to promote their studio. This is referred to as the "Monthly Local Advertising Requirement."
Basecamp Fitness requires that all advertising be approved by them and that franchisees use their preferred or designated vendors for both the Grand Opening Program and ongoing local marketing services. These vendors may include Basecamp Fitness or its affiliates. Franchisees must submit their grand opening and local marketing plans for prior approval and provide proof of purchase or other documentation to verify they have met the minimum spending requirements. They must also show proof of performance of their advertising activity.
If a franchisee fails to meet the $2,500 Monthly Local Advertising Requirement in any calendar month, they must pay Basecamp Fitness the difference. Basecamp Fitness can then choose to spend the money in the franchisee's market area or place it in the General Advertising and Marketing Fund. Basecamp Fitness also has the option to require the franchisee to pay them the $2,500 per month directly, so that Basecamp Fitness can manage the local advertising spend in the market. If Basecamp Fitness implements this requirement, the franchisee must also pay a one-time set-up fee.
Basecamp Fitness also reserves the right to audit a franchisee's records to ensure compliance with these advertising requirements. Franchisees must provide all requested information, including invoices, to demonstrate their compliance. The FDD emphasizes that local marketing is the franchisee's responsibility, and the General Advertising and Marketing Fees are only meant to supplement these local efforts. Franchisees must submit all advertising materials for approval at least four weeks before use, and Basecamp Fitness reserves the right to modify or reject any advertising material.