What property is subject to the lien granted to Basecamp Fitness for unpaid obligations?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- F.
Within five (5) days after termination, you will pay to us all amounts owed to us under this Agreement, including the Royalty Fees that would be due through the date this Agreement was scheduled to expire.
Further, if this Agreement is terminated for any reason other than as a result of a material breach of this Agreement by us that is not cured within thirty (30) days following notice from you, such sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by us as a result of the default and the termination.
You agree that until such obligations are paid in full, you hereby grant us a lien against any and all of the personal property, furnishings, equipment, signs, fixtures and inventory owned by you and located on your Basecamp Studio premises on the date this Agreement terminates or expires and authorize us to file financing statements and other documents we deem appropriate to perfect such lien.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee owes money to Basecamp Fitness upon termination or expiration of the franchise agreement, Basecamp Fitness is granted a lien against specific property. This lien applies to all personal property, furnishings, equipment, signs, fixtures, and inventory owned by the franchisee.
This lien is limited to items located on the Basecamp Studio premises as of the date the Franchise Agreement terminates or expires. To protect its interest, Basecamp Fitness is authorized to file financing statements and other documents to perfect the lien, ensuring their claim is legally recorded and prioritized.
For a prospective franchisee, this means that in the event of outstanding debts to Basecamp Fitness at the end of the franchise term, the franchisor has a legal claim on the business assets within the studio to recover those debts. Franchisees should be aware of this provision and understand their obligations to avoid potential loss of business assets.