What is included in the Basecamp Fitness rent payment besides the base rent?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
RENT: The Agreement shall commence upon the Rent Commencement Date and shall end upon full performance by Customer in observance of all terms, conditions, and covenants set forth at the Agreement and any extension thereof. Rent shall be paid in advance and in the amount and frequency as provided herein plus any applicable taxes and fees including but not limited to sales tax, use tax, property tax, equipment protection fees, and late charges. The first such rental payment shall be due on the Rent Commencement Date and each subsequent payment will be due on the same day of each subsequent month or other frequency as explicitly provided for. Owner will have the right to apply all sums received from Customer to any amounts due and owed to Owner under the terms of this Agreement or any other Agreement between Owner and Customer. Customer agrees that Customer owes Owner additional pro rata rent calculated as one-thirtieth (1/30h) of the monthly rental amount per day from the earlier of the date of Equipment delivery or the date of advanced funding to Supplier until the Rent Commencement Date and the Agreement begins. Provided no events of default have occurred, Owner will allow Customer to pay off the Agreement early for an amount equal to the sum of all remaining unpaid rental payments, discounted to a net present value at a rate up to five percent (5%), plus the purchase option price.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, rent payments include not only the base rent but also additional applicable taxes and fees. These include, but are not limited to, sales tax, use tax, property tax, equipment protection fees, and late charges. The agreement commences upon the Rent Commencement Date and ends when the customer has fully performed all terms, conditions, and covenants. Rent is to be paid in advance, with the initial payment due on the Rent Commencement Date and subsequent payments due on the same day of each following month or as otherwise specified.
Basecamp Fitness has the right to apply any sums received from the customer towards any outstanding amounts owed under the agreement or any other agreement between the owner and the customer. Additionally, the customer is responsible for pro rata rent calculated daily from the earlier of the equipment delivery date or the date of advanced funding to the supplier until the Rent Commencement Date. This daily rate is calculated as one-thirtieth (1/30th) of the monthly rental amount.
Provided no events of default have occurred, Basecamp Fitness will allow the customer to pay off the agreement early. The early payoff amount is equal to 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 provides an opportunity for franchisees to potentially reduce their overall costs by paying off the agreement early, assuming they have the financial capacity to do so and meet the conditions set forth by Basecamp Fitness.