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

According to Basecamp Fitness's 2025 Franchise Disclosure Document, a customer's obligation to make payments is absolute and unconditional. This means that customers are not entitled to any abatement, reduction, setoff, defense, or counterclaim against any person for any reason whatsoever, including equipment malfunction, defect, or inability to use any item of equipment. This clause protects the owner (likely a leasing company) from disputes related to the equipment's performance.

This provision is common in equipment leasing agreements to ensure a steady revenue stream for the lessor, regardless of issues the lessee might experience with the equipment. The customer bears the risk of equipment issues and must continue making payments as agreed. This non-cancellation clause is a significant point for potential Basecamp Fitness franchisees to understand, as it affects their financial obligations and risk exposure related to leased equipment.

For a prospective Basecamp Fitness franchisee, this means they cannot withhold rent payments, even if the equipment is faulty or not functioning correctly. Any disputes about the equipment must be handled separately without affecting the obligation to pay rent. Franchisees should carefully inspect equipment before agreeing to lease it and consider obtaining appropriate insurance or maintenance agreements to mitigate the risk of equipment-related problems.