What fees are included in the amounts owed to Basecamp Fitness after termination of the franchise agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Within five (5) days after termination, you will pay to us all amounts owed to us under this Agreement, including the Royalty Fees that would be due through the date this Agreement was scheduled to expire.
Further, if this Agreement is terminated for any reason other than as a result of a material breach of this Agreement by us that is not cured within thirty (30) days following notice from you, such sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by us as a result of the default and the termination.
You agree that until such obligations are paid in full, you hereby grant us a lien against any and all of the personal property, furnishings, equipment, signs, fixtures and inventory owned by you and located on your Basecamp Studio premises on the date this Agreement terminates or expires and authorize us to file financing statements and other documents we deem appropriate to perfect such lien.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, within five days of the termination of the franchise agreement, the franchisee must pay all outstanding amounts to Basecamp Fitness. This includes Royalty Fees that would have been due through the original expiration date of the agreement.
If the termination is due to any reason other than Basecamp Fitness's uncured material breach, the franchisee will also be responsible for all damages, costs, and expenses, including reasonable attorney's fees, incurred by Basecamp Fitness as a result of the default and termination. To secure these obligations, the franchisee grants Basecamp Fitness a lien against all personal property, furnishings, equipment, signs, fixtures, and inventory located at the Basecamp Studio premises.
This means that franchisees should be aware that termination can result in significant financial obligations beyond just outstanding fees. They may also be liable for future royalties and legal costs, especially if the termination is due to their own default. The lien on business assets further underscores the importance of fulfilling all contractual obligations to avoid potentially losing control of business property upon termination.