What does the Basecamp Fitness customer warrant regarding the equipment's status as personal property?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
OWNERSHIP OF EQUIPMENT: Owner has purchased the Equipment at the direction of Customer. Owner shall at all times have sole ownership and title to the Equipment. Customer warrants that the Equipment shall at all times remain personal property; the Equipment is removable from and is not essential to any premise upon which it is located regardless of attachment to realty, and Customer agrees to take such action at its expense as may be necessary to prevent any third party from acquiring any interest in the Equipment.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the customer warrants that the equipment will remain personal property at all times. This means the equipment is considered movable and not permanently attached to any real estate, regardless of any physical attachment.
Furthermore, the customer agrees to take necessary actions at their own expense to prevent any third party from acquiring an interest in the equipment. This could involve actions like filing paperwork or providing notices to ensure that no other entity can claim ownership or a lien on the equipment.
This warranty is crucial for Basecamp Fitness because it maintains clear ownership and control over the equipment, which is likely leased to the franchisee. By ensuring the equipment remains personal property, Basecamp Fitness can more easily repossess it if the franchisee defaults on their obligations. This arrangement protects Basecamp Fitness's assets and reduces the risk associated with leasing equipment to franchisees.