How much time does a Basecamp Fitness franchisee have to cure a default after receiving notice?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for those defaults provided for under Section 14.A above, you will be in default hereunder for any failure to maintain or comply with any of the terms, covenants, specifications, standards, procedures or requirements imposed by this Agreement or any other agreement you or any of your affiliates have with us or with any of our affiliates, or in any Manual, policy or procedure statement or other written document provided by us, or to carry out the terms of this Agreement in good faith.
Before we terminate this Agreement as a result of such defaults, we will provide you with thirty (30) days written notice of your default.
If the defaults specified in such notice are not cured within the thirty (30) day period (either by you or by any financial institution that has loaned money to you or to your business), we may terminate this Agreement upon the expiration of the thirty (30) day period without further notice.
Such defaults will include, without limitation, the occurrence of any of the following events:
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- you fail to construct or remodel your Basecamp Studio within the time provided for in this Agreement;
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- you fail, refuse, or neglect to promptly pay when due any monies owing to us, to our affiliates, or to other creditors you have, or to submit the financial or other information required under this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee typically has 30 days to cure a default after receiving written notice. However, this cure period does not apply to all defaults. Basecamp Fitness can terminate the agreement without any opportunity to cure for specific events, such as the franchisee being liquidated or dissolved, failing to operate the studio for seven consecutive days (unless due to unforeseen circumstances like fire or flood), or making unauthorized transfers.
Other defaults that trigger immediate termination include engaging in fraudulent conduct, being convicted of a felony, misusing the Basecamp Fitness marks without ceasing within 24 hours of notice, maintaining false records, withholding access to accounting systems, failing to open the studio by the required date, impairing the value of the marks or system, or failing to comply with real estate requirements.
For defaults that do allow a cure period, Basecamp Fitness will provide a 30-day written notice. If the franchisee or their financial institution does not correct the specified defaults within this period, Basecamp Fitness can terminate the agreement without further notice. These curable defaults include failing to construct or remodel the studio on time, failing to pay monies owed to Basecamp Fitness or its affiliates, or failing to submit required financial information. Additionally, if a franchisee's act or omission in operating their Basecamp Studio results in a continuing violation of any applicable law that damages the goodwill associated with the System or the Marks, Basecamp Fitness has the right to terminate the Agreement if the franchisee does not cure such default within twenty-four (24) hours after notice from them.
If a franchisee fails to cure a default within the applicable period, Basecamp Fitness may charge a Standard Default Fee on a monthly basis until the default is resolved. This fee is intended to offset the costs Basecamp Fitness incurs to address the default and is in addition to any other damages they may claim. Prospective franchisees should be aware of the specific conditions that lead to termination with and without cure periods, as well as the potential financial implications of failing to meet the franchise agreement's obligations.