If a Basecamp Fitness franchisee is liquidated or dissolved, can the agreement be terminated?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Without Notice. You will be in default and we may, at our option, terminate this Agreement, without affording you any opportunity to cure the default, effective upon delivery of notice of termination to you, following the occurrence of any of the following events:
-
- you are liquidated or dissolved;
-
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness has the right to terminate the franchise agreement without notice if the franchisee is liquidated or dissolved. This means that if a franchisee's business or assets are wound up, and the franchisee ceases to exist as a legal entity, Basecamp Fitness can immediately terminate the franchise agreement.
This termination is effective upon delivery of the termination notice to the franchisee. The franchisee does not have an opportunity to remedy the situation. This is a significant risk for franchisees, as any form of liquidation or dissolution, whether voluntary or involuntary, can lead to immediate termination of the franchise agreement.
In the event of termination, the franchisee must immediately cease operating the Basecamp Fitness business and cannot represent themselves as a franchisee. They must also stop using all confidential information, the approved Information System, related software, methods, procedures, techniques, and the Marks associated with the Basecamp Fitness system. The franchisee is also obligated to return the operations manual and any other property owned by Basecamp Fitness.
Furthermore, the franchisee must take actions to cancel any assumed name registrations containing the Basecamp Fitness marks and discontinue using the marks on any Technology Platforms. The franchisee is also required to modify the Basecamp Studio premises to distinguish its appearance from the Basecamp Fitness system, including removing signage, altering the color scheme, and discontinuing the use of any items containing Basecamp Fitness's marks.