Does the Basecamp Fitness owner have liability with respect to the maintenance of the equipment?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
the Agreement were a "finance lease" under Article 2A of the UCC. To the extent permitted by applicable law, Customer hereby waives any and all rights conferred upon a lessee under UCC Article 2A-508 through 336.2A-522 whether o
AND DISCLAIM ANY RELIANCE UPON ANY STATEMENTS OR REPRESENTATIONS MADE BY OWNER. OWNER SHALL HAVE NO LIABILITY FOR THE INSTALLATION OR PERFORMANCE OF THE EQUIPMENT OR TO PERFORM ANY SERVICES, OR WITH RESPECT TO THE SELECTION, INSTALLATION, TESTING, PERFORMANCE, QUALITY, MAINTENANCE, OR SUPPORT OF THE EQUIPMENT. THE SUPPLIER IS NOT AN AGENT OF OWNER'S AND NO REPRESENTATION BY SUPPLIER SHALL IN ANY WAY AFFECT CUSTOMER'S DUTY TO PAY THE RENTAL PAYMENTS AND PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT.
LOSS OR DAMAGE: Customer is responsible for the risk of loss, destruction of, or damage to the Equipment. No such loss or damage relieves Customer from the payment obligations under this Agreement. Customer agrees to promptly notify Owner in writing of any loss or damage and at Owner's discretion either pay to Owner the Accelerated Amount or repair or replace the Equipment so that the Equipment is returned to the condition required herein.
COLLATERAL PROTECTION & INSURANCE: Customer agrees to keep the Equipment fully insured against property damage and/or loss with Geneva Capital, LLC and its Assigns as 8. COLLATERAL PROTECTION & INSURANCE: Customer agrees to keep the Equipment fully insured against property damage and/or loss with Geneva Capital, LLC and its Assigns as Loss Payee in an amount not less than the original Equipment Cost until this Agreement is terminated. Customer also agrees to obtain a $500,000 comprehensive general liability insurance policy and to include Geneva Capital, LLC and its Assigns as an Additional Insured on the policy. Customer agrees to provide Owner with a complete certificate of insurance acceptable to Owner, before this Agreement begins. In the event the acceptable certificate is not received or later lapses, Customer further authorizes Owner as Customer's attorney-in-fact to enroll Customer in an equipment protection program through a third-party insurance provider and Customer agrees to pay a monthly admin
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the customer (franchisee) bears significant responsibility for equipment-related liabilities. The franchisee is responsible for any loss, destruction, or damage to the equipment, and these obligations persist regardless of such events. This means a Basecamp Fitness franchisee cannot avoid payment obligations even if the equipment is damaged or lost.
The franchisee must promptly inform the owner (likely the equipment lessor or financing company) of any loss or damage. The owner then has the discretion to require the franchisee to either pay the Accelerated Amount (likely the remaining lease payments) or repair/replace the equipment to restore it to its original condition. This places a direct financial burden on the franchisee to maintain or restore the equipment.
Furthermore, the franchisee is obligated to maintain full insurance coverage against property damage and loss, naming Geneva Capital, LLC (or its assigns) as the loss payee. A comprehensive general liability insurance policy of $500,000 is also required, with Geneva Capital, LLC, listed as an additional insured. Failure to maintain acceptable insurance allows the owner to enroll the franchisee in an equipment protection program, with the franchisee bearing the costs and a monthly administrative surcharge. This highlights the importance of securing adequate insurance to mitigate potential financial risks associated with equipment maintenance and liabilities.