Risk Score
Pending analysis
Investment Range
$535,613 - $853,256
Franchise Fee
$33,750
Total US Locations
21
Business Summary
Basecamp Fitness offers franchises for operating boutique interval training studios under the 'BASECAMP' and 'BASECAMP FITNESS' trademarks. These studios provide short, high-intensity guided workouts that combine strength, cardio, and core training in a fast-paced, high-energy environment. Basecamp Fitness studios offer class-based workouts, various membership types, and sell merchandise like apparel, food, and beverage products.
Corporate History
The Basecamp Fitness concept and brand was originally founded in March 2013 with the opening of the first Basecamp Fitness studio in Burlingame, California. In October 2018, Basecamp Fitness's predecessor, Basecamp Fitness, LLC, acquired the brand's assets. This predecessor began offering Basecamp Studio franchises in the spring of 2020. The current franchisor entity, Basecamp Fitness Franchisor LLC, was formed in October 2021 and began offering franchises in November 2021. This transition was part of a broader securitization transaction where all existing U.S. franchise agreements and intellectual property were transferred to Basecamp Fitness Franchisor LLC. Anytime Fitness, LLC, an affiliate, provides management, support, and services to Basecamp Fitness franchisees.
Financial Overview
Investment Range
$535,613 - $853,256
Franchise Fee (Low)
$33,750
Franchise Fee (High)
$42,500
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$329,136
Equipment Costs (High)
$587,971
Working Capital
$76,910
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Basecamp Fitness's guarantor, SEB Franchising Guarantor LLC (SFG), received an unqualified audit opinion on its financial statements. However, the FDD explicitly notes in its 'Special Risk(s) to Consider About This Franchise' section that SFG's financial condition, as reflected in these statements, 'calls into question' Basecamp Fitness's ability to provide services and support to franchisees. SFG's balance sheets show $5,000,000 in cash and no liabilities, with a small net loss in recent years. This risk statement indicates that despite the simple balance sheet, there are underlying concerns regarding the guarantor's capacity to meet its substantial obligations in the broader corporate structure.
Financing Details
Basecamp Fitness does not offer any direct or indirect financing to help franchisees establish their business, nor does it guarantee any franchisee obligations, except as noted. However, Basecamp Fitness has arrangements with third-party lenders to assist franchisees. Geneva Capital, LLC offers equipment leases up to $125,000 for tangible items like equipment, security systems, and signage. These leases typically require one advance payment (up to 20%) and a security deposit equal to one month's lease payment, with terms from 12 to 36 months and fixed interest rates based on market conditions and creditworthiness. Personal guarantees are required. Basecamp Fitness has an agreement with Geneva Capital to assume certain default obligations, assist with remarketing equipment, establish a pool for losses, and guarantees certain loss amounts, receiving a 1.5% referral fee and another 1.5% for the guaranty pool. Guidant Financial offers a 401(k) business financing program for $4,995, which includes business entity filing, 401(k) plan design, and tax attorney consultation, plus $149 per month for annual administration. Guidant also helps secure SBA loans for a $2,500 consulting fee (refundable for loans over $200,000), unsecured financing up to $125,000 (requiring a minimum 680 credit score with varying fees), equipment leasing (10% down, 6.99% to 13.90% interest over up to 60 months), and Portfolio Loans to leverage non-retirement investments up to 80% of their value (requiring a minimum $200,000 portfolio and a 2% to 3% fee). Basecamp Fitness receives a $1,000 referral fee for clients who use Guidant's retirement rollover program.
Performance Metrics
Total US Locations
21
Franchised Units
16
Corporate Units
5
Avg Square Footage
2,500
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
Basecamp Fitness Franchisor LLC itself has no litigation required to be disclosed. However, two historical litigation cases related to the franchisor's affiliate, The Bar Method, are disclosed. In 2009, the Illinois Attorney General brought an action against The Bar Method, alleging that an agreement constituted an unregistered franchise and that a disclosure document was not provided. The Bar Method agreed to a consent decree, a permanent injunction against offering/selling unregistered franchises in Illinois, and paid $5,000 in penalties and costs. The franchisee in question did not accept rescission and continues to operate. Separately, in New York in 2009, The Bar Method and its Vice President entered into an Assurance of Discontinuance after being accused of selling an unregistered franchise. Without admitting fault, they agreed to offer rescission to the New York operator and paid $2,500 to the state. The New York operator also did not accept rescission and continues to operate.
Bankruptcy History
Basecamp Fitness's Chief Financial Officer, R. John Pindred, was an officer of Family Christian, LLC from August 2004 until September 2014. Approximately five months after Mr. Pindred left that company, Family Christian, LLC filed for Chapter 11 bankruptcy protection on February 11, 2015. The Chapter 11 Plan of Liquidation was confirmed on August 11, 2015, involving a sale of assets and continuity of operations, and the case was officially closed on August 1, 2016.
Agreement Terms
Initial Term
6 years
Renewal Term
5 years
Renewal Conditions
To renew their Basecamp Fitness franchise, franchisees must provide 210 days' written notice before the current term ends. They must be in full compliance with all agreements and not have a history of repeated defaults. Franchisees are required to renovate and re-equip their Basecamp Studio to meet current brand standards and image. They must pay a $5,000 renewal fee and sign the then-current standard Franchise Agreement, which may include different terms and a modified (potentially reduced) protected territory. Franchisees also need to prove their right to occupy the location for the renewal term or secure a new approved site if the current one is no longer viable. All management staff must complete any required refresher training, and franchisees must sign a general release of claims against Basecamp Fitness and its affiliates, to the fullest extent allowed by law.
Training & Support Program
Franchisor Assistance
Before a Basecamp Fitness studio opens, Basecamp Fitness assists franchisees with site approval, provides a protected territory, and offers an online operations manual, prototype floor plan, and a specific studio layout/design (Compliance Drawing, with a fee for additional drawings). It reviews construction documents (charging a fee if a non-designated architectural vendor is used, but requiring its designated vendor for the first studio). Initial training is provided to the Principal Operator and Studio Manager (free, except for a $3,000 Launch Training fee and a $3,000 Coaches Training fee for fitness managers and coaches). Basecamp Fitness sells required retail products, a build-out package, and a technology and fitness equipment package, and helps develop and implement a Grand Opening Program. Franchisees also get a direct contact for pre-opening support. After opening, Basecamp Fitness provides ongoing assistance through phone, online, or email support from a representative, and may send a representative for on-site visits. It arranges a mystery shopping service and shares the results. It maintains a brand website with a local landing page for each studio and offers additional and advanced training on System updates. Basecamp Fitness also manages the General Advertising and Marketing Fund. Continuing education includes additional Coaches Training (charged after the first 12 months), Relaunch Training (required if membership targets are missed), Vitals Training (offered in non-conference years), and Conferences (with a registration fee). Franchisees must also earn annual Continuing Engagement Credits.
Initial Training Hours
102
Training Location
Virtual, Woodbury, MN or another designated location
Ongoing Support
After opening, Basecamp Fitness franchisees receive ongoing support through a representative available by telephone, online, or email during business hours to discuss operational issues, and optionally through on-site visits. Basecamp Fitness arranges a mystery shopping service to assess the studio experience and provides results to franchisees. It maintains an internet website for the brand with a local landing page for each studio. Additional and advanced training programs are made available for franchisees and their management team on System changes and updates. Basecamp Fitness also administers the General Advertising and Marketing Fund. Continuing education includes Additional Coaches Training for new coaches (free for the first 12 months, then $250 per attendee), Relaunch Training ($4,500, required if 6-month membership targets are not met or optional), and Vitals Training ($350 plus costs, offered in non-conference years). Franchisees are required to attend conferences (with a registration fee) and earn annual Continuing Engagement Credits (1,200 per year, with a $1.00 fee per credit deficiency). Additional customized on-site assistance is available upon request or may be required by Basecamp Fitness, incurring a fee of $500-$1,000 per day per representative plus travel, lodging, and meals.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Staff Count
5
Territory Size Requirements
Basecamp Fitness defines protected territories using mapping and demographic software to draw a circle around the franchisee's approved location. While the exact boundaries can vary, the territory will not exceed an area with more than 50,000 people, based on census projections for up to five years from the Franchise Agreement date. The criteria used for defining these territories also include population growth trends, the apparent affluence of the population, density of residential and business entities, traffic generators, driving time, and natural boundaries.
Staffing Notes
Each Basecamp Fitness studio must employ a studio manager, a fitness manager, and fitness coaches, with a minimum of 3 coaches. The franchisee is responsible for recruiting, hiring, and training these personnel, including conducting criminal background checks (unless prohibited by law). The individual designated as the 'Principal Operator' (who can be the owner) and the studio manager must complete the Initial Training Program. The fitness manager must complete the 'Day in the Life Training' and the 'Coaches Training Course.' All coaches must complete the Coaches Training Course within 45 days of their hire date. Employees are considered agents and employees of the franchisee, not Basecamp Fitness, and the franchisee has control over compensation, terms of employment, discipline, and termination. The Principal Operator, studio, and fitness managers must sign confidentiality and non-disclosure agreements.