What amounts are included in the payments owed to Basecamp Fitness after termination?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Within five (5) days after termination, you will pay to us all amounts owed to us under this Agreement, including the Royalty Fees that would be due through the date this Agreement was scheduled to expire.
Further, if this Agreement is terminated for any reason other than as a result of a material breach of this Agreement by us that is not cured within thirty (30) days following notice from you, such sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by us as a result of the default and the termination.
You agree that until such obligations are paid in full, you hereby grant us a lien against any and all of the personal property, furnishings, equipment, signs, fixtures and inventory owned by you and located on your Basecamp Studio premises on the date this Agreement terminates or expires and authorize us to file financing statements and other documents we deem appropriate to perfect such lien.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee is required to pay all outstanding amounts owed to Basecamp Fitness. This includes royalty fees that would have been due through the originally scheduled expiration date of the agreement.
Furthermore, if the termination occurs for any reason other than a material breach by Basecamp Fitness that remains uncured after a 30-day notice period, the franchisee will also be responsible for covering all damages, costs, and expenses incurred by Basecamp Fitness. This includes reasonable attorneys' fees resulting from the default and subsequent termination.
To secure these obligations, the franchisee grants Basecamp Fitness a lien against all personal property, furnishings, equipment, signs, fixtures, and inventory located at the Basecamp Studio premises on the termination date. This allows Basecamp Fitness to file financing statements to perfect this lien, ensuring their claim is prioritized. This means that Basecamp Fitness could potentially seize and liquidate these assets to recover the amounts owed. Franchisees should be aware of these financial obligations and potential legal ramifications upon termination of the agreement.