Dear Franchise Partners,  

The purpose of this communication is to inform you about revised pricing in our Customs Program. Since the inception of the customs program, HQ has worked to manage costs and margins for Franchise Partners. In that time, we chose to assume rising costs over time to reduce impact to the system. At this time, we can no longer assume those costs and have executed a more responsible assessment of all costs.

Since the January 24th communication, HQ has worked with our vendors to evaluate the original price adjustments for the Customs Program. We were able to successfully negotiate a reduction in the total price increase and create additional price breaks with garment quantity.

As previously communicated, the 25% discount that started on January 23rd to mitigate the initial price increase, will end at midnight on March 7th to accommodate for the new pricing structure.


PRICING
Based on calculations across all SKUs, there is a slight increase in pricing associated with buyer choices in ink and quantity.

Note:
- Some garments will be less at 1-2 inks and some will be more.
- Increase in garment pricing is the direct cost from the manufacturer.
- The new 48-unit price break discount aligns with the quantity of garments ordered most often. This price break is passing directly to the franchise partner on the customs.burnbootcamp.com site.

Use this chart showing examples of pricing impacts across eight popular SKUs to assess the difference in 2024 pricing compared to 2025 pricing. The bottom two SKUs represent the lowest and highest average price increases.
--> Pathway: Library > Revenue Streams- US > Retail- US > 2025 Activewear Resources

SUPPORT STRATEGIES
- Focus on designs with 1-3 ink
- Template Catalogue: adding additional templated designs with the currently scheduled Q2 drop on April 2nd.
- Source budget friendly garments in a variety of styles and price points.
- Work with the Activewear Committee to understand needs and pain points.

COMMITMENT TO IMPROVED EXPERIENCE
While the increased cost of customs has created frustrations, we want to acknowledge the experience when ordering customs impacts your perception of value. The Activewear team has worked with Brand U directly to implement strict SLA’s to ensure your buying experience is improved and ultimately meets your expectations.

We will continue to monitor costs of goods and provide more real time adjustments. While the intention to insulate Franchise Partners from price increases in the past was meant to be positive, the impact over time created frustration.

The Customs Program is currently being evaluated in totality. It is critical we continue to evaluate opportunities to reduce friction and elevate Franchise Partner profitability. We will communicate future changes with an email and video on Friday, March 14th.
 

Sincerely,

Director of Retail