For a Basecamp Fitness Area Development Agreement, what does the personal guarantor guarantee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| limitation the dispute resolution provisions of the Agreement. | In consideration of the execution of the Area Development Agreement (the "Agreement") between BASECAMP FITNESS FRANCHISOR LLC ("we" or "us" or "our") and [INSERT LEGAL NAME OF DEVELOPER] (the "Developer"), dated, and for other good and valuable consideration, the undersigned, for themselves, their heirs, successors, and assigns, do jointly, individually and severally hereby become surety and guarantor for the payment of all amounts and the performance of the covenants, terms and conditions in the Agreement, to be paid, kept and performed by the Developer, including without |
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| identical terms and conditions of the Agreement. | Further, the undersigned, individually and jointly, hereby agree to be personally bound by each and every condition and term contained in the Agreement and agree that this Personal Guaranty will be construed as though the undersigned and each of them executed an Area Development Agreement containing the The undersigned waives: (1) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed; (2) protest and notice of default to any party respecting the indebtedness or nonperformance of any obligations hereby guaranteed; and (3) any right he/she may have to require that an action be brought against the Developer or any other person as a condition of liability; and (4) notice of any changes permitted by the terms of the Agreement or agreed to by the Developer. |
| Developer with or without the undersigned receiving notice thereof. | In addition, the undersigned consents and agrees that: (1) the undersigned's liability will be joint and several and will not be contingent or conditioned upon our pursuit of any remedies against the Developer or any other person; (2) such liability will not be diminished, relieved or otherwise affected by the Developer's insolvency, bankruptcy or reorganization, the invalidity, illegality or unenforceability of all or any part of the Agreement, or the amendment or extension of the Agreement with or without notice to the undersigned; and (3) this Personal Guaranty will apply in all modifications to the Agreement of any nature agreed to by It is further understood and agreed by the undersigned that the provisions, covenants and conditions of this Personal Guaranty will inure to the benefit of our successors and assigns. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the personal guarantor for an Area Development Agreement guarantees the payment of all amounts and the performance of all covenants, terms, and conditions within the agreement. This includes, but is not limited to, the obligations to be paid, kept, and performed by the Developer.
Furthermore, the personal guarantor agrees to be personally bound by every condition and term in the Area Development Agreement. This personal guaranty is interpreted as if the guarantor had directly executed the Area Development Agreement themselves, agreeing to all its terms and conditions.
The guarantor waives any rights to receive notices of demand for payment, notices of nonperformance, or notices of default. They also waive any right to require that action be taken against the Developer before pursuing the guarantor. The guarantor's liability is joint and several, meaning Basecamp Fitness can pursue the guarantor without first pursuing remedies against the Developer. The guarantor's obligations are not affected by the Developer's insolvency, bankruptcy, or the invalidity of the Area Development Agreement. Any modifications to the Area Development Agreement also apply to the guarantor, regardless of whether they receive notice of these changes.
This comprehensive guarantee ensures that Basecamp Fitness has recourse to the personal assets of the guarantor should the Developer fail to meet their obligations under the Area Development Agreement. Prospective franchisees acting as personal guarantors should fully understand the Area Development Agreement's terms, as they are personally liable for the Developer's performance.