What action does the Basecamp Fitness customer agree to take to protect the owner's interest in the equipment?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
OWNERSHIP OF EQUIPMENT: Owner has purchased the Equipment at the direction of Customer. Owner shall at all times have sole ownership and title to the Equipment. Customer warrants that the Equipment shall at all times remain personal property; the Equipment is removable from and is not essential to any premise upon which it is located regardless of attachment to realty, and Customer agrees to take such action at its expense as may be necessary to prevent any third party from acquiring any interest in the Equipment. This Agreement is a "true lease" and not a loan or installment sale. If this Agreement is held by a court not to be a "true lease" to the realty of the rent or other payments hereunder shall be deemed interest and such interest exceeds the highest rate permitted by applicable law, such excess interest shall be applied to your obligations to us or refunded if no obligations remain. Customer hereby authorizes Owner for file UCC financing statements as We deem necessary to protect Our interest, and Owner may charge a fee to cover related costs or at Owner's discretion a non-filing protection fee. The parties further agree that this Agreement is a "finance lease" under Article 2A of the Uriform Commercial Code ("UCC") and notwithstanding any determination to the contrary. Owner will have the rights and remedies of a lessor as if the Agreement were a "finance lease" under Article 2A of the UCC. To the extent permitted by applicable law, Customer hereby waives any and all rights conferred upon a lessee under UCC Article 2A-508 through 336.2A-522 whether o
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the customer agrees to take actions to protect the owner's interest in the equipment. Specifically, the customer warrants that the equipment will remain personal property and will be removable from any premises, regardless of attachment to realty.
The customer also agrees to take actions at their own expense to prevent any third party from acquiring an interest in the equipment. This means the customer is responsible for ensuring that the equipment is not treated as part of the real estate and that no other entity can claim ownership or a lien on it.
Furthermore, the customer authorizes Basecamp Fitness to file UCC (Uniform Commercial Code) financing statements as deemed necessary to protect their interest. Basecamp Fitness may charge a fee to cover these related costs or, at their discretion, a non-filing protection fee. This protects Basecamp Fitness's ownership by publicly recording their interest in the equipment, which could impact the franchisee financially.