Who must provide a personal guaranty for a Basecamp Fitness lease with Geneva Capital, LLC?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee obtains financing from Geneva Capital, LLC for a new location, any individual who is an owner of the business entity (the franchisee) and their spouse must provide a personal guaranty for the lease. This requirement is part of the financing arrangement offered by Geneva Capital, which can provide up to $125,000 for items like tangible equipment, security systems, and signage, excluding the initial franchise fee and working capital.

This personal guaranty means that the owner(s) and their spouse are personally liable for the lease obligations of the Basecamp Fitness franchise. If the franchise defaults on the lease, Geneva Capital can pursue the personal assets of the owner(s) and their spouse to recover the outstanding debt. This is a common practice in franchise financing, as it provides the lender with additional security beyond the assets of the business itself.

Prospective Basecamp Fitness franchisees should carefully consider the implications of providing a personal guaranty. It is crucial to understand the terms of the lease agreement with Geneva Capital and to assess the potential financial risks involved. Franchisees should also consult with legal and financial advisors to fully understand their obligations and to explore alternative financing options if they are not comfortable providing a personal guaranty. The FDD also mentions that Geneva may file criminal charges against you if any information supplied by you on your credit application or during the credit process is found to have been falsified or misrepresented, so it is important to be accurate and honest in all dealings with Geneva Capital.