What conditions must a Basecamp Fitness franchisee meet to be eligible for renewal?

your rights under this Agreement. Without our written consent, you may not use the Franchised Location for any purpose other than the operation of a Basecamp Fitness studio.

2. TERM; RENEWAL RIGHTS

• A. Initial Term. The term of this Agreement is for six (6) years commencing on the Effective Date of this Agreement, unless terminated earlier as provided in this Agreement.

• 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:

• 1. 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;
• 1. 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;
• 1. you make, or provide for in a manner satisfactory to us, such renovation and reequipping of your Basecamp Studio as we deem appropriate to reflect the then-current standards and image of the System, including, without limitation, renovation or replacement of signs, equipment, furnishings, fixtures and decor;
• 1. you pay us a renewal fee at least fifteen (15) days prior to the expiration of the initial term of this Agreement in an amount equal to Five Thousand Dollars ($5,000) (the "Renewal Fee");
• 1. you sign the standard Franchise Agreement then being used by us within thirty(30) days of receipt, provided that you pay the Renewal Fee in lieu of the Initial Franchise Fee set forth in the then-current Franchise Agreement. The terms of such Franchise Agreement may differ from this Agreement, including higher fees and a modification to the Protected Territory based upon our thencurrent methods of determining protected territories (and which may include a reduction in the size of the Protected Territory);
• 1. you present satisfactory evidence that you have the right to remain in possession of the Franchised Location for the duration of the renewal term, unless we determine that the location of your business is no longer viable for the operation of your Basecamp Studio, in which case we may condition your right to renew on your obtaining a new site for your Basecamp Studio that we approve;
• 1. your management staff successfully completes any refresher training prescribed by us at least thirty (30) days prior to the expiration of the term of this Agreement; and
• 1. at the time you sign the Franchise Agreement to renew your franchise, you sign and deliver to us a general release, in the form we prescribe, releasing, to the fullest extent permitted under the laws of the state where your Basecamp Studio is located, all claims that you may have against us and our affiliates and our respective current and former officers, directors, shareholders, employees, insurers, consultants, contractors and agents, in both their corporate and individual capacities.

If you fail to timely comply with any provision of this Section 2.B, time being of the essence, we will at all times thereafter be permitted to operate or license to someone else the right to operate a Basecamp Fitness stu

Source: Item 22 — CONTRACTS (FDD pages 61–62)