How does the Basecamp Fitness owner apply sums received from the customer?

According to the 2025 Basecamp Fitness Franchise Disclosure Document, if no events of default have occurred, the owner will allow the customer to pay off the agreement early. The amount will be 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.

This means that Basecamp Fitness customers have the option to pay off their agreements early, which could be beneficial for both the customer and the owner. The customer can eliminate future rental payments, and the owner receives a lump sum payment. The discount rate of up to 5% provides an incentive for early payment, making it more attractive for customers to take advantage of this option.

However, it's important to note that this option is only available if no events of default have occurred. This protects the owner from customers who may be behind on payments or have violated the terms of the agreement. Prospective Basecamp Fitness franchisees should understand the conditions under which early payment is allowed and how the discount is calculated to effectively manage customer agreements.