What is the range of lease terms offered by Geneva Capital, LLC for Basecamp Fitness franchisees?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
rangement with a third-party equipment lender who will provide financing to our franchisees who meet this lender's requirements.
- Geneva Capital, LLC ("Geneva"), offers financing of up to $125,000 for a new location, including, among others, tangible equipment, security system, and signage (but excluding your initial franchise fee and working capital), based on credit approval. Financing is offered as a lease that typically requires 1 advance payment of up to 20%. Geneva also collects a security deposit equal to 1 month's lease payment. Lease terms vary from 12 to 36 months. Geneva offers both true tax and capital leases. Fixed equivalent interest rates are based on current market rates and conditions and on your financial and credit worthiness. Geneva will not require you to pledge any other assets to secure the lease, but each individual who is an owner of any business entity that is the franchisee, and their spouse, must provide a personal guaranty. The amount of your lease payments will depend on the amount financed, the term of the lease, and the interest rate. You will have the right to purchase the equipment at the end of the lease at fair market value, typically capped at 10% or 20% of the original equipment cost, assuming you have not defaulted under the lease. The ability to prepay your obligations is negotiated on a case by case basis. You will be in default under Geneva's lease documents if you fail to pay amounts owed when due or you breach any other provision of the lease documents. If you commit a payment default, you must
Source: Item 10 — FINANCING (FDD pages 33–35)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Geneva Capital, LLC offers equipment financing to new Basecamp Fitness franchisees, up to $125,000, to cover tangible equipment, security systems, and signage, but not the initial franchise fee or working capital. This financing is structured as a lease, which typically requires an advance payment of up to 20% of the financed amount, plus a security deposit equal to one month's lease payment.
The lease terms offered by Geneva Capital vary from 12 to 36 months. Basecamp Fitness franchisees can choose between true tax and capital leases. The interest rates are fixed and based on current market conditions and the franchisee's creditworthiness. While Geneva Capital does not require franchisees to pledge other assets, it does require each owner of the franchisee business entity, and their spouse, to provide a personal guaranty.
At the end of the lease term, franchisees have the option to purchase the equipment at its fair market value, typically capped at 10% or 20% of the original equipment cost, provided they have not defaulted on the lease. The ability to prepay obligations is negotiated on a case-by-case basis. Defaulting on payments results in a late charge of 15% of the overdue payment or $25.00, whichever is greater (or the maximum charge allowed by law, if less).