factual

Can a Basecamp Fitness customer claim a defense against rent payments for any reason?

Basecamp_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. NON-CANCELABLE LEASE: CUSTOMER'S OBLIGATION TO MAKE PAYMENTS, TO PAY OTHER SUMS WHEN DUE AND TO OTHERWISE PERFORM AS REQUIRED UNDER THE AGREEMENT IS ABSOLUTE AND UNCONDITIONAL AND SHALL NOT BE SUBJECT TO ANY ABATEMENT, REDUCTION, SETOFF, DEFENSE, OR COUNTERCLAIM WHICH CUSTOMER MAY HAVE AGAINST ANY PERSON FOR ANY REASON WHATSOEVER OR ANY MALFUNCTION, DEFECT OR INABILITY TO USE ANY ITEM OF EQUIPMENT.

Source: Item 23 — RECEIPTS (FDD pages 62–248)

What This Means (2025 FDD)

According to Basecamp Fitness's 2025 Franchise Disclosure Document, a customer's obligation to make payments is absolute and unconditional. The customer cannot claim any abatement, reduction, setoff, defense, or counterclaim against any person for any reason, including equipment malfunction, defect, or inability to use the equipment. This means that regardless of any issues the customer might experience, they are still obligated to fulfill their payment obligations as outlined in the agreement.

This clause protects the owner (likely the franchisee or a leasing company) by ensuring a steady stream of revenue, regardless of any disputes or equipment problems. It shifts the risk of equipment issues or other problems entirely onto the customer. This type of clause is common in equipment leasing agreements to ensure the lessor receives the expected payments.

For a prospective Basecamp Fitness franchisee, this information is crucial because it outlines the financial responsibilities and limitations of their customers. Franchisees should be aware of this clause and understand that they are entitled to receive payments from customers irrespective of potential issues the customer may raise. This non-cancellation clause is a significant protection for the franchisee's revenue stream.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.