What was the total advertising fund expense for Basecamp Fitness in 2023?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands of US dollars) | 2024 | 2023 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise royalties | $ 145,245 $ 61,387 | $ 58,105 | |
| Franchise fees | 20,063 | 14,390 11,096 | |
| Sales | 78,248 | 41,857 42,586 | |
| Advertising fund revenue | 16,379 | 17,607 17,531 | |
| Vendor rebates | 55,950 | 47,825 42,115 | |
| Other revenues | 1,124 | 1,016 700 | |
| Total revenues | 317,009 | 184,082 172,133 | |
| Cost of goods sold | 43,354 | 18,835 18,554 | |
| Gross profit | 273,655 | 165,247 153,579 | |
| General and administrative expenses | 89,493 | 64,416 48,492 | |
| Advertising fund expense | 16,638 | 18,948 16,682 | |
| Total general, administrative, and advertising fund expense | 106,131 | 83,364 65,174 | |
| Income from operations | 167,524 | 81,883 88,405 |
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the advertising fund expense for 2023 was $18,948 (in thousands of US dollars). This figure represents the total expenses incurred by the advertising fund for the creation, development, and implementation of marketing, advertising, and related programs for Basecamp Fitness centers in the United States.
For a prospective franchisee, this number indicates the scale of investment Basecamp Fitness makes in brand promotion and marketing initiatives. It is important to note that these expenses are covered by advertising fees collected from franchisees, as outlined in the franchise agreements. The advertising fund is restricted to advertising, product development, public relations, and administrative expenses, ensuring that the collected fees are used specifically for these purposes.
Understanding the advertising fund's revenue and expenses can help a franchisee assess the franchisor's commitment to marketing and brand development. Reviewing these figures over multiple years, as presented in the table, can provide insights into the consistency and trends in advertising investments. Additionally, franchisees should inquire about the specific strategies and allocation of these advertising funds to ensure they align with their business goals and market conditions.