What condition regarding compliance with agreements must a Basecamp Fitness franchisee meet to be eligible for renewal?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Renewal. You have the right to renew your Basecamp Fitness franchise for the Franchised Location for an additional five (5) year term, provided you meet all of the following conditions:
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- you have given us written notice at least two hundred ten (210) days prior to the end of the then current term of this Agreement of your desire to renew;
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- you and all entities you are a member, partner or shareholder of, are in compliance with all agreements between you and us and between you and our affiliates, and there has been no series of defaults by you thereunder (i.e., an abnormal frequency of defaults or a default that has occurred repeatedly, or a combination thereof), whether or not such defaults were cured;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee must be in compliance with all agreements to be eligible for renewal. Specifically, the franchisee and all entities they are a member, partner, or shareholder of, must be in compliance with all agreements between them and Basecamp Fitness, and between them and Basecamp Fitness's affiliates. Furthermore, there cannot have been a series of defaults by the franchisee, regardless of whether such defaults were cured. A 'series of defaults' is defined as an abnormal frequency of defaults, a default that has occurred repeatedly, or a combination of both.
This condition means that a Basecamp Fitness franchisee's eligibility for renewal is heavily dependent on their adherence to the franchise agreement and related agreements. Even if a franchisee has addressed past defaults, a pattern of frequent or repeated defaults could jeopardize their renewal. This highlights the importance of maintaining consistent compliance throughout the initial term of the franchise agreement.
For a prospective Basecamp Fitness franchisee, this underscores the need to thoroughly understand all obligations under the franchise agreement and any related agreements with the franchisor or its affiliates. It also emphasizes the importance of diligent record-keeping and proactive communication with Basecamp Fitness to address any potential issues promptly and avoid a pattern of defaults. Franchisees should also be aware that the definition of 'series of defaults' provides Basecamp Fitness with some discretion in determining whether a franchisee meets this renewal condition.