Not sure if Basecamp Fitness is right for you?
Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.
Take the Quiz & Get MatchedBasecamp Fitness
How much does Basecamp Fitness cost?
Initial Investment Range
$97,500 to $832,511
Franchise Fee
$229,610 to $263,773
Basecamp Fitness Franchisor LLC is offering franchises for the operation of boutique interval training studios that offer short, high-intensity guided workouts combining strength, cardio and core training in a fast-paced, high-energy environment.
Enjoy our complimentary free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Basecamp Fitness April 24, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 19, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The FDD includes a “Special Risk” explicitly stating the financial condition of its affiliate guarantor, SEB Franchising Guarantor LLC (SFG), “calls into question the Franchisor’s financial ability to provide services and support to you.” While SFG’s financials show $5 million in cash, this warning suggests it may be insufficient to back all its guaranteed brands. The managing affiliate, Anytime Fitness, LLC, has significant debt, further clouding the support structure’s financial stability.
Potential Mitigations
- Your accountant must analyze the financial statements of both the guarantor and the managing affiliate to assess the true financial risk.
- A franchise attorney should review the terms of the parent guarantee in Exhibit J to determine its strength and enforceability.
- Discuss the specific reasons for the disclosed financial risk warning directly with the franchisor with help from your business advisor.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals significant franchisee turnover for a system of this size. In the most recent year, four franchisees representing eight agreements left the system. Many of these were for unopened outlets, suggesting potential issues in the site selection, build-out, or pre-opening process. Additionally, two company-owned outlets have closed in the last three years. This level of churn, especially for unopened units, is a strong indicator of potential systemic problems or franchisee dissatisfaction.
Potential Mitigations
- Contacting former franchisees listed in Exhibit C is critical to understand why they left the system, especially those who never opened.
- Your franchise attorney can help you formulate specific questions for these former franchisees regarding their challenges.
- A careful review of the timeline and requirements for opening in the Franchise Agreement with your business advisor is necessary.
Rapid System Growth
Medium Risk
Explanation
Item 20 data shows the number of franchised units more than tripled in three years (from 6 to 19). While growth can be positive, such rapid expansion for a newer system can strain its ability to provide adequate site selection support, training, and operational assistance to all franchisees. The high number of unopened franchises noted in the FDD could be a symptom of this rapid growth outpacing the support infrastructure.
Potential Mitigations
- Question the franchisor about their specific plans for scaling support staff and infrastructure to match the rate of new studio openings.
- A business advisor can help you assess whether the management team and support systems seem capable of handling this growth.
- Inquire with newer franchisees about the quality and responsiveness of the support they received during their opening process.
New/Unproven Franchise System
High Risk
Explanation
The franchisor explicitly discloses a “Short Operating History” as a special risk. Basecamp Fitness Franchisor LLC (Basecamp LLC) was formed in late 2021 and began franchising shortly after. Although its affiliates and management have experience with other fitness brands, this specific franchise system is at an early stage of development. This increases the risk associated with its brand recognition, proven profitability for franchisees, and operational systems, making it a riskier investment than a more mature system.
Potential Mitigations
- A business advisor should help you conduct extensive due diligence on the track record of the management team with their other franchise concepts.
- It is vital to speak with the earliest franchisees to understand the evolution of the system and the quality of support.
- Your attorney might be able to negotiate more favorable terms to compensate for the higher risk of an unproven system.
Possible Fad Business
Medium Risk
Explanation
The business operates in the boutique fitness sector, which is highly competitive and susceptible to changing consumer trends. While interval training has been popular, you must assess whether the specific Basecamp Fitness model has long-term appeal or if it risks being a short-term trend. The long-term viability of the business depends on its ability to adapt and remain relevant beyond current fitness fashions, a risk you assume for the full contract term.
Potential Mitigations
- A business advisor can help you independently research the long-term market trends for boutique, high-intensity interval training studios.
- Evaluating the franchisor's commitment to innovation and brand evolution by reviewing their plans for new programs and services is important.
- Consider the business model's resilience in different economic climates with your financial advisor.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD Package. The management team disclosed in Item 2 has extensive experience in the fitness and franchising industries, primarily through their roles at large, affiliated brands like Anytime Fitness. This experience is a positive factor. However, it is always important to ensure that management's experience is directly relevant to the specific challenges of this brand.
Potential Mitigations
- A business advisor can help you research the specific track records of the key executives listed in Item 2.
- Speaking with current franchisees about their direct experiences with the management team can provide valuable insight.
- It is wise to ask the franchisor how their past experience with other brands will specifically benefit Basecamp franchisees.
Private Equity Ownership
Medium Risk
Explanation
Item 1 discloses a complex ownership structure leading up to a parent company jointly owned by two large entities, which is common after a major transaction like the one involving Orangetheory. This structure, often associated with private equity involvement, may lead to decisions prioritizing short-term financial returns over the long-term health of franchisees. The management of the system is also outsourced to an affiliate, Anytime Fitness, LLC, creating layers between you and the ultimate decision-makers.
Potential Mitigations
- With your business advisor, research the track record of the parent entities and their management of other franchise systems.
- Speaking with franchisees about any changes in culture, fees, or support since the new ownership structure was put in place is crucial.
- Your attorney should explain the implications of the management agreement with the affiliate entity.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The FDD discloses a complex parent and affiliate structure. The direct franchisor, Basecamp LLC, does not provide its own financials. Instead, financials for an affiliate guarantor (SEB Franchising Guarantor LLC) are provided, along with a guaranty. While this structure is disclosed, the lack of direct financial statements for the franchisor you are contracting with makes it difficult to assess its individual financial health and reliance on the guarantor.
Potential Mitigations
- Your accountant should review the financials of the guarantor and the managing affiliate to understand the complete financial picture.
- The strength and enforceability of the affiliate guaranty in Exhibit J should be carefully evaluated by your franchise attorney.
- Inquire with your business advisor about the risks associated with contracting with one entity while relying on others for financial backing and support.
Predecessor History Issues
Low Risk
Explanation
Item 1 discloses that Basecamp LLC acquired the franchise system from a predecessor, Basecamp Fitness, LLC, in 2021 as part of a securitization transaction. The history of the brand also includes an asset purchase from the “Dethrone Entities” in 2018. While this history is disclosed, it is important to understand that you are contracting with a relatively new corporate entity that inherited the system, which can sometimes bring legacy issues or changes in operational philosophy.
Potential Mitigations
- A franchise attorney can help you understand the implications of the asset transfers and securitization transaction described in Item 1.
- When speaking with long-term franchisees, ask about their experience under the predecessor entities versus the current franchisor.
- Your business advisor can help investigate the history and reputation of the predecessor entities if concerns arise.
Pattern of Litigation
Low Risk
Explanation
Item 3 does not disclose any litigation against Basecamp LLC itself. It does, however, report two 2009 regulatory actions against an affiliate, The Bar Method, for selling franchises without proper registration. These cases are old and were resolved without admission of liability. While not a current pattern of litigation against the franchisor, it is a required disclosure about an affiliated brand within the same parent system.
Potential Mitigations
- Your franchise attorney should review the details of the affiliate litigation disclosed in Item 3.
- Conducting independent online searches for any recent litigation involving Basecamp Fitness or its key executives is a prudent step.
- It is important to discuss any legal concerns with your attorney, even if they involve affiliate brands.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems