What happens if the termination of the Basecamp Fitness agreement is a result of a material breach by Basecamp Fitness that is not cured?
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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, if the Franchise Agreement is terminated due to a material breach by Basecamp Fitness that is not cured within thirty days of receiving notice from the franchisee, the franchisee is not liable for certain post-termination payments and fees.
Specifically, the franchisee is typically required to pay all amounts owed, including royalty fees that would have been due through the scheduled expiration date of the agreement. Additionally, the franchisee would normally 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. However, these financial obligations are waived if the termination results from an uncured material breach by Basecamp Fitness.
This provision protects the franchisee from incurring additional financial burdens if Basecamp Fitness fails to uphold its end of the agreement. It is important for prospective franchisees to understand the conditions under which they may be relieved of these post-termination obligations, as it provides a degree of financial security in the event of a breach by the franchisor.