What actions can the Owner take if a Basecamp Fitness customer is in default?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
form any of Owner's obligations. Customer agrees that the rights of the new owner will not be subject to any claims, defenses, or set offs that Customer may have against Owner.
- DEFAULT AND REMEDIES: If Customer does not pay any rental payment or other sum due to Owner when due, or if Customer breaches any of Customer's obligations in the Agreement or any other agreement with Owner, or if Customer or any Guarantor of Customer's obligations dies, becomes insolvent, files for or is the subject of a proceeding in bankruptcy, Customer will be in default. Customer agrees that a default under this Agreement or any other agreement between Customer and Owner shall constitute a default under all agreements at Owner's discretion. If any part of a payment is not received by Owner within 4 days of its due date, Customer agrees to pay a late charge of 15% of the payment which is late or $25.00, whichever is greater, or if less, the maximum charge allowed by law. If Customer is ever in default, Owner may do any of the following, each of which shall be cumulative: retain Customer's security deposit; elect not to renew any or all time-out controls programmed within the Equipment; remotely disable the Equipment; instruct Supplier, manufacturer or others to withhold service on the Equipment; proceed by appropriate court action(s) to enforce any right or remedy under this Agreement, at law or in equity, including any right under the UCC; recover interest on any unpaid payment from the date it was due until fully paid at the rate of 18% per annum or if less the highest rate permitted by law; without notice, cancel this Agreement whereupon all of Customer's rights to the use of the Equipment shall terminate, and Customer shall deliver possession of the Equipment to Lessor in accordance with this Agreement and Customer shall deliver possession of the Equipment; with this Agreement and Customer shall remain liable for all amounts due herein; take possession of any or all of the Equipment and sell, dispose of, hold, use or lease the Equipment; declare immediately due and payable, as liquidated damages for loss of bargain and not as a penalty (i) all accrued and unpaid rent and other accrued obligations hereunder, plus (ii) the sum of all unpaid rent for the remaining Agreement term plus the end of term purchase option price, both
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, several actions can be taken if a customer defaults on their agreement. A customer is considered in default if they fail to make payments when due, breach any obligations outlined in the agreement, or if they or their guarantor become insolvent or file for bankruptcy. A default under any agreement between the customer and the Basecamp Fitness studio owner constitutes a default under all agreements, at the owner's discretion.
If a customer's payment is not received within four days of the due date, the customer must pay a late charge. This charge is the greater of 15% of the late payment or $25.00, but not exceeding the maximum charge allowed by law.
In the event of a customer default, the Basecamp Fitness studio owner has several options. They can retain the customer's security deposit, elect not to renew time-out controls on equipment, remotely disable the equipment, or instruct suppliers to withhold service. The owner can also pursue legal action to enforce their rights under the agreement or the Uniform Commercial Code (UCC). They can recover interest on unpaid payments at a rate of 18% per annum, or the highest rate permitted by law. The owner can also cancel the agreement without notice, terminating the customer's rights to use the equipment, and take possession of the equipment for sale, disposal, or lease. Additionally, the owner can declare all unpaid rent and obligations immediately due and payable, along with the sum of all unpaid rent for the remaining term, discounted to present value at a 3% discount rate, with interest accruing at 18% per annum or the highest rate permitted by law.
If the customer provided falsified information on their credit application, the owner may file criminal charges in addition to the other remedies. Should the owner need to involve an attorney or collection agency, the customer is responsible for reasonable attorney and collection fees, as well as court costs. Upon repossession of equipment due to default, the customer transfers all ownership interest in the equipment to the owner and is liable for repossession costs, including any damages to the equipment or property. However, the owner is not responsible for any consequential or incidental damages resulting from their default under the agreement, and any delay in enforcing the owner's rights does not prevent them from doing so later. The owner is also authorized to obtain and use consumer credit reports as needed, with the customer waiving any related rights under the Fair Credit Reporting Act.