For Basecamp Fitness, what is the requirement regarding ownership and the signing of a Guaranty by each owner?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, each owner of a Basecamp Fitness franchise must sign the then-current Guaranty at the time they become an owner. This requirement applies to all owners as of the effective date of the franchise agreement and to any individuals who become owners thereafter.

This provision ensures that all individuals with an ownership stake in the Basecamp Fitness franchise are personally committed to upholding the obligations and responsibilities outlined in the franchise agreement. By signing a Guaranty, each owner agrees to be held personally liable for the franchise's debts and obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and encourages owners to actively manage and oversee the business.

The franchisee is required to represent and warrant that the information contained in the Statement of Ownership and Management is true and correct as of the effective date. Furthermore, the franchisee must immediately notify Basecamp Fitness of any changes to the information in the Statement of Ownership and Management and provide an updated statement upon request. This allows Basecamp Fitness to maintain accurate records of the franchise's ownership structure and ensure that all owners have signed the required Guaranty.

Prospective franchisees should carefully review the Guaranty document and understand the full extent of their personal liability before signing the franchise agreement. It is advisable to seek legal counsel to fully understand the implications of the Guaranty and how it may affect their personal assets and financial situation.