Does Basecamp Fitness guarantee the obligations of its franchising subsidiaries?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, SEB Franchising Guarantor LLC, a Delaware limited liability company (the "Guarantor"), located at 111 Weir Drive, Woodbury, Minnesota 55125, absolutely and unconditionally guarantees to assume the duties and obligations of Basecamp Fitness Franchisor LLC, located at 111 Weir Drive, Woodbury, Minnesota 55125 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement and Area Development Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement and Area Development Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement and Area Development Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement and Area Development Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
The Guarantor signs this guarantee at Woodbury, Minnesota, on the 28th day of March 2025.
GUARANTOR:
SEB FRANCHISING GUARANTOR LLC
James Goniea Its: Secretary
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, SEB Franchising Guarantor LLC provides a guarantee for the obligations of Basecamp Fitness Franchisor LLC, along with other franchising subsidiaries. SEB Franchising Guarantor LLC "absolutely and unconditionally guarantees to assume the duties and obligations of Basecamp Fitness Franchisor LLC" under its franchise registration in each state and under its Franchise Agreement and Area Development Agreement. This guarantee remains effective until all obligations of Basecamp Fitness under these agreements are satisfied or completely discharged.
This guarantee means that prospective Basecamp Fitness franchisees can have increased confidence in the stability and reliability of the franchise system. Should Basecamp Fitness Franchisor LLC fail to meet its obligations, SEB Franchising Guarantor LLC is legally bound to step in and fulfill those responsibilities. This arrangement offers a layer of protection for franchisees, reducing the risk associated with potential franchisor shortcomings.
It is important to note that the guarantor, SEB Franchising Guarantor LLC, does not waive receipt of notice of default on the part of Basecamp Fitness Franchisor LLC. This suggests that the guarantor expects to be informed of any failures or breaches by the franchisor. The guarantee is binding on the guarantor and its successors and assigns, ensuring long-term security for the franchisees. The Guarantor signed this guarantee on March 28, 2025, in Woodbury, Minnesota.