If a Basecamp Fitness franchisee is in default, is withholding approval considered reasonable?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee is in default or breach of the Franchise Agreement, any withholding of approval or consent by Basecamp Fitness will be considered reasonable. Basecamp Fitness retains the right to withhold approval for any reason or no reason, unless specifically indicated otherwise in the agreement. However, when the terms of the agreement specifically require that Basecamp Fitness not unreasonably withhold approval or consent, any withholding of approval or consent will be considered reasonable if the franchisee is in default or breach under the agreement.

This means that if a Basecamp Fitness franchisee fails to meet their obligations under the Franchise Agreement, such as making payments on time or adhering to operational standards, Basecamp Fitness can reasonably deny any requests that require their approval. This could include things like approving a transfer of ownership, a change of location, or any other action that requires the franchisor's consent.

This provision protects Basecamp Fitness by allowing them to maintain control over the franchise system and ensure that franchisees are meeting their obligations. It also incentivizes franchisees to remain in compliance with the Franchise Agreement to avoid having their requests denied. Franchisees should be aware of the conditions that constitute a default or breach of the agreement to avoid potential issues with obtaining approvals or consents from Basecamp Fitness.