How is the Liquidated Damages fee calculated for Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
|---|---|---|---|
| Liquidated Damages | $10,000 multiplied by number of undeveloped Basecamp studios | Immediately after notice from us | Only payable if your ADA is terminated and you have not developed all Basecamp studios you agreed to develop under the ADA. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the liquidated damages fee is calculated by multiplying $10,000 by the number of undeveloped Basecamp Fitness studios. This fee is payable immediately after notice from Basecamp Fitness.
This fee is only payable if the franchisee's Area Development Agreement (ADA) is terminated and the franchisee has not developed all of the Basecamp Fitness studios they agreed to develop under the ADA. This means that the fee is designed to compensate Basecamp Fitness if a franchisee fails to meet their development obligations and the agreement is terminated as a result.
For a prospective Basecamp Fitness franchisee, this highlights the importance of carefully considering the development schedule outlined in the Area Development Agreement. Franchisees should ensure they have the resources and capabilities to meet the agreed-upon development timeline to avoid potential liquidated damages. It is also important to understand the conditions under which the ADA can be terminated, as this will trigger the liquidated damages fee if development obligations are not met.