What is included in the amount required for a Basecamp Fitness customer to pay off the agreement early?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, a customer can pay off their agreement early if no default events have occurred. The early payoff amount is calculated as the sum of all remaining unpaid rental payments, discounted to a net present value at a rate of up to five percent (5%), plus the purchase option price.

This means that if a Basecamp Fitness franchisee leases equipment to customers, those customers have the option to end their lease agreements early. However, they must pay the remaining rental payments, but these payments are discounted to their present value, meaning they are adjusted to reflect the time value of money. A discount rate of up to 5% is applied. In addition to the discounted rental payments, the customer must also pay the purchase option price, which is the price to buy the equipment outright at the end of the original lease term.

For a prospective Basecamp Fitness franchisee, this clause provides flexibility for customers who may want to terminate their agreements early. It also ensures that the franchisee receives the present value of the remaining payments and the purchase option price, mitigating potential financial losses from early terminations. Franchisees should be aware of the specific discount rate applied and the calculation of the purchase option price to accurately determine the early payoff amount for customers.