What happens if a Basecamp Fitness franchisee fails to comply with real estate requirements?

bt authorization granted to us or our affiliates, or initiate any stop payments against us or our affiliates;

• 1. you fail to open the Basecamp Studio for business to the general public by the Required Opening Date in the Rider to this Agreement;
• 1. you, by act or omission, materially impair the value of, or the goodwill associated with, any of the Marks or the System; or
  • 1. you fail to comply with our requirements for securing real estate.

• B. With Notice and Failure to Cure. Except for those defaults provided for under Section 14.A above, you will be in default hereunder for any failure to maintain or comply with any of the terms, covenants, specifications, standards, procedures or requirements imposed by this Agreement or any other agreement you or any of your affiliates have with us or with any of our affiliates, or in any Manual, policy or procedure statement or other written document provided by us, or to carry out the terms of this Agreement in good faith. 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. Such defaults will include, without limitation, the occurrence of any of the following events:

• 1. you fail to construct or remodel your Basecamp Studio within the time provided for in this Agreement;
• 1. you fail, refuse, or neglect to promptly pay when due any monies owing to us, to our affiliates, or to other creditors you have, or to submit the financial or other information required under this Agreement;
• 1. a threat or danger to public health or safety results from the construction, maintenance, or operation of the Basecamp Studio;
• 1. you offer or sell non-approved products or services or offer or sell products or services via a medium we do not approve; or
• 1. you, by act or omission in connection with the operation of your Basecamp Studio, permit a continuing violation of any applicable law, ordinance, rule, or regulation of a governmental body; provided, however, that if such act or omission damages the goodwill associated with the System or the Marks, we will have the right to terminate this Agreement if you do not cure such default within twenty-four (24) hours after notice from us.

• C. Standard Default Fee. In addition to our right to terminate the Franchise Agreement, if you breach your obligations under this Agreement and fail to cure the default within the applicable cure period provided above, you must pay us our then-current "Standard Default Fee" on a monthly basis until the default is cured in order to offset our costs incurred to address the default. The Standard Default Fee is in addition to any other costs or damages we may incur as a result of the breach.

• D. Applicable Law. If the provisions of this Section 14 are inconsistent with applicable law, the applicable law will apply.

• E. Pre-termination Options. Prior to the termination of this Agreement, if you fail to pay any amounts owed to us or our affiliates, fail to comply with any term of this Agreement, or notify us that your Basecamp Studio is closing, then in addition to our right to terminate this Agreement or to bring a claim for damages, we have the option to:

• 1. remove the listing of your Basecamp Studio from all advertising published or approved by us;
  • 1. cease listing your Basecamp Studio on any Technology Platforms;

Source: Item 22 — CONTRACTS (FDD pages 61–62)