What was the total value of Basecamp Fitness's equipment, before accumulated depreciation, as of December 31, 2023?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
024, 2023 and 2022, the Company recorded $32,808, $31,553, and $26,089, respectively, in payroll and related expenses allocated from SEB, which is included in general and administrative expenses in the consolidated statements of comprehensive income. Management
(in thousands of US dollars)
believes that the allocation methodology is reasonable based on the nature of shared services; however, these transactions are not necessarily indicative of amounts that would have been incurred if the Company operated on a stan
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the total value of property and equipment before accumulated depreciation as of December 31, 2023, was $12,847. This figure represents the sum of several categories of assets, including leasehold improvements valued at $5,777, general equipment at $3,572, fitness equipment at $2,757, autos and trucks at $309, furniture and equipment at $397, and construction in progress at $35.
For a prospective Basecamp Fitness franchisee, understanding the breakdown of these figures is crucial for assessing the initial investment and ongoing capital expenditure requirements. The equipment and fitness equipment categories are directly related to the core operations of a fitness studio, and their values reflect the investment needed to establish and maintain a functional workout space. Leasehold improvements represent investments in the physical space of the studio, while autos and trucks may be relevant for mobile services or transportation needs. Furniture and equipment likely include items necessary for the reception area, office, and other support areas.
It is important to note that these values are before accumulated depreciation, meaning they represent the original cost of the assets. Depreciation is an accounting method that allocates the cost of an asset over its useful life, reflecting the gradual decline in its value due to wear and tear or obsolescence. The FDD also lists accumulated depreciation, which was ($9,370) as of December 31, 2023. This figure is subtracted from the total property and equipment to arrive at the net book value of $3,477.
Franchisees should consider the depreciation methods used by Basecamp Fitness, as described elsewhere in the FDD, to understand how the value of these assets will be recognized over time. Additionally, it is advisable to inquire about the expected lifespan of the equipment and the potential costs of replacement or upgrades, as these factors can significantly impact the financial performance of the franchise.