Will all Basecamp Fitness studios, including company-owned studios, contribute at the same rate to a local advertising cooperative?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The amount of the contribution you must contribute will be determined at the time we establish the cooperative but will not be more than 2% of your monthly Gross Revenue. All franchisees and companyowned Basecamp Fitness studios in the market area will be expected to contribute at the same rate to the cooperative. Each Basecamp Studio contributing to a cooperative will have one vote on matters involving the activities of the cooperative. But the cooperative may not produce or use any advertising, marketing or promotional plans that have not be approved by us.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–45)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, if local advertising cooperatives are established in a market area with multiple Basecamp Fitness studios, both franchised and company-owned studios will contribute to the cooperative at the same rate. The contribution amount will be determined when the cooperative is established, but it will not exceed 2% of the studio's monthly Gross Revenue. Each studio, whether franchised or company-owned, will have one vote on cooperative matters. However, all advertising, marketing, and promotional plans must be approved by Basecamp Fitness.
This policy ensures that all Basecamp Fitness studios in a given market area contribute equally to local advertising efforts, fostering a sense of shared responsibility for promoting the brand. The 2% cap on contributions provides a limit to the financial burden on each studio. The requirement for Basecamp Fitness's approval on all advertising plans ensures brand consistency and quality control across all cooperative activities.
For a prospective franchisee, this means that if a local advertising cooperative exists or is established in their market area, they will be required to participate and contribute up to 2% of their monthly Gross Revenue. They will have a voice in the cooperative's activities but must adhere to Basecamp Fitness's guidelines and approvals. This arrangement aims to create a unified and consistent marketing approach within the local market, with costs shared equitably among all studios.
It is important to note that Basecamp Fitness retains the right to change, dissolve, or merge any cooperative at any time. Franchisees should inquire about the current status of advertising cooperatives in their target market and understand the potential impact on their advertising strategies and budget.