What is the condition for paying the Liquidated Damages to Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
|---|---|---|---|
| Liquidated Damages | $10,000 multiplied by number of undeveloped Basecamp studios | Immediately after notice from us | Only payable if your ADA is terminated and you have not developed all Basecamp studios you agreed to develop under the ADA. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the liquidated damages fee is payable only if the franchisee's Area Development Agreement (ADA) is terminated and the franchisee has not developed all Basecamp Fitness studios they agreed to develop under the ADA. The amount of the liquidated damages is $10,000 multiplied by the number of undeveloped Basecamp studios. This fee is due immediately after notice from Basecamp Fitness.
This means that if a franchisee signs an Area Development Agreement committing to open multiple Basecamp Fitness locations but fails to meet that obligation and the agreement is terminated, they will owe Basecamp Fitness $10,000 for each studio they failed to open. This is in addition to any other fees or penalties that may apply due to the termination of the agreement.
Liquidated damages are a common provision in franchise agreements, particularly in area development agreements, as they are intended to compensate the franchisor for the losses incurred when a franchisee fails to fulfill their development obligations. Prospective Basecamp Fitness franchisees should carefully consider the development schedule outlined in the ADA and their ability to meet those obligations before signing the agreement, as failure to do so could result in significant financial penalties.