Are Basecamp Fitness studio memberships subject to sales taxes in some states?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Many states, and some municipalities, have laws and regulations that apply specifically to health clubs and fitness clubs, membership contracts, operations and licenses. Many states limit the length of your member contracts, provide for specific provisions to be included in those contracts, prescribe the format or type size for the contract, and/or provide members the right to terminate their contracts. State regulations may also require you to obtain a bond to protect pre-paid membership fees you collect. Some states and municipalities may also have enacted laws requiring a staff person be certified in basic cardiopulmonary
resuscitation, or have other specialized training. In addition, some states have laws requiring a fitness studio to have an automated external defibrillator and other first aid equipment on the premises, and some may require you to take other safety measures. Some states impose sales taxes on studio memberships. There may also be special permits required for you to operate some or all of your business. Your business is subject to state and federal regulations that allow the government to restrict business operations during state or national emergencies. If these or similar laws have been enacted in the state or municipality in which you intend to operate your Basecamp Studio, you will need to comply with these laws, and we urge you to become familiar with them.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees should be aware that some states impose sales taxes on studio memberships. This means that depending on the location of the Basecamp Fitness studio, franchisees may be required to collect and remit sales taxes on membership fees. This can affect the overall pricing strategy and profitability of the studio. Franchisees need to factor in these potential tax obligations when setting membership prices and forecasting revenue.
Beyond sales taxes, the FDD highlights that Basecamp Fitness studios are subject to various national, state, and local regulations. These include laws related to the Americans With Disabilities Act, wage and hour laws, employment laws, zoning laws, pricing and consumer disclosures laws, unfair and deceptive consumer practices laws, and business licensing requirements. Franchisees must also comply with regulations related to credit card acceptance, data protection, and electronic marketing.
Furthermore, many states have specific laws and regulations that apply to health clubs and fitness clubs, including those governing membership contracts, operations, and licenses. These regulations may limit the length of membership contracts, require specific provisions in those contracts, prescribe the format or type size for the contract, and grant members the right to terminate their contracts. Some states may also require franchisees to obtain a bond to protect pre-paid membership fees. Franchisees should consult with legal and tax professionals to ensure full compliance with all applicable laws and regulations in their specific operating area.