What is a Basecamp Fitness customer required to do with all ProVision Materials upon termination or expiration of the agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ts terms and conditions.
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- Rights and Duties of Parties Upon Termination or Expiration. Upon termination or expiration of this Agreement, all rights granted to you under this Agreement will automatically terminate, and:
- A. All remaining rights granted to you to develop Basecamp Fitness Studios under this Agreement will automatically be revoked and will be null and void and shall revert to us. You will not be entitled to any refund of any fees.
- B. You and your affiliates must within five (5) business days of the termination or expiration pay all sums owing to us and our affiliates. In addition, you agree to pay as fair and reasonable liquidated damages (but not as a penalty) an amount equal to Ten Thousand Dollars ($10,000) for each undeveloped Basecamp Studio. You agree that this amount is in addition to the Development Fee paid under this Agreement, and is for lost revenues from Royalty Fees (as defined in the Franchise Agreement) and other amounts payable to us, including the fact that you were holding the developme
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
Based on the 2025 Basecamp Fitness Franchise Disclosure Document, the document does not specify what a Basecamp Fitness customer is required to do with all ProVision Materials upon termination or expiration of the agreement. However, the document does mention the rights and duties of parties upon termination or expiration of the agreement, such as all rights granted to the franchisee under the agreement will automatically terminate. The franchisee will not be entitled to any refund of fees.
Additionally, the franchisee and its affiliates must, within five business days of the termination or expiration, pay all sums owing to Basecamp Fitness and its affiliates. The franchisee also agrees to pay $10,000 for each undeveloped Basecamp Studio as fair and reasonable liquidated damages, but not as a penalty. This amount is in addition to the Development Fee paid under the agreement and is for lost revenues from Royalty Fees and other amounts payable to Basecamp Fitness.
To fully understand the obligations regarding ProVision Materials, a prospective Basecamp Fitness franchisee should directly ask the franchisor about the specific requirements for the handling, return, or destruction of these materials upon termination or expiration of the franchise agreement. This information is crucial for understanding the complete scope of responsibilities when the franchise relationship ends.