For Basecamp Fitness, what tax years are subject to examination?

Based on the 2025 Franchise Disclosure Document, Basecamp Fitness is treated as a single member limited liability company (LLC) and is considered a disregarded entity for tax purposes. Consequently, the company's income, losses, and credits are included in the income tax returns of Purpose Brands.

The FDD specifies that the accrued expenses and other current liabilities as of December 31, 2024, and 2023 consist of sales tax payables, customer deposits, and accruals for general operating and payroll-related expenses. These accrued expenses are recognized when obligations are incurred, even if they have not yet been invoiced, and are settled during the normal course of business.

While the FDD mentions that the income taxes of Basecamp Fitness are included in the returns of its parent company, Purpose Brands, it does not explicitly state which tax years are subject to examination. A prospective franchisee should seek clarification from Basecamp Fitness regarding which specific tax years may be subject to examination by tax authorities. Understanding this will help a franchisee assess potential liabilities or impacts on the overall financial health of the franchise.