Can a financial institution cure a Basecamp Fitness franchisee's default?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Before we terminate this Agreement as a result of such defaults, we will provide you with thirty (30) days written notice of your default.
If the defaults specified in such notice are not cured within the thirty (30) day period (either by you or by any financial institution that has loaned money to you or to your business), we may terminate this Agreement upon the expiration of the thirty (30) day period without further notice.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a financial institution that has loaned money to a franchisee or their business has the option to cure certain defaults. Specifically, if Basecamp Fitness provides a franchisee with a 30-day written notice of default for failing to maintain or comply with the terms of the Franchise Agreement, a financial institution can step in to cure the default within that 30-day period. If the financial institution cures the default within the given timeframe, Basecamp Fitness cannot terminate the agreement.
This ability for a financial institution to cure a franchisee's default provides a safety net for both the franchisee and the lender. It allows the franchisee an extended opportunity to resolve the issue, while also protecting the lender's investment in the Basecamp Fitness franchise. This is a fairly common practice in franchising, as it aligns the interests of the franchisor, franchisee, and lender in maintaining the operation of the franchise.
However, it's important to note that this cure option does not apply to all types of defaults. Basecamp Fitness reserves the right to terminate the Franchise Agreement without any opportunity to cure for certain serious violations, such as abandonment of the studio, unauthorized transfers, fraudulent conduct, or repeated material violations. Therefore, the financial institution's ability to cure is limited to defaults where Basecamp Fitness provides a 30-day notice and cure period.