Must each owner of a Basecamp Fitness franchise sign a Guaranty?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, each owner must sign a Guaranty. Specifically, each owner of a Basecamp Fitness franchise, as of the effective date of the agreement and thereafter, is required to sign the franchisor's current Guaranty at the time they become an owner.

For prospective franchisees, this means that anyone holding an ownership stake in the franchise entity must personally guarantee the franchise's obligations to Basecamp Fitness. This is a standard practice in franchising, as it provides the franchisor with additional security and recourse in case of default or non-compliance with the franchise agreement. The Statement of Ownership and Management must be kept up to date and provided to Basecamp Fitness upon request.

However, the California addendum to the FDD states that franchisees in California must sign a personal guaranty, making the franchisee and their spouse individually liable for the financial obligations under the agreement if they are married. This guaranty places the franchisee's and their spouse's marital and personal assets at risk if the franchise fails. Therefore, the requirement for a guaranty may vary based on the franchisee's location.