Under what circumstances will the agreement related to the Basecamp Fitness franchise terminate automatically?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
All rights granted in this Agreement immediately terminate upon written notice without opportunity to cure if: (i) you become insolvent, commit any affirmative action of insolvency or file any action or petition of insolvency; (ii) a receiver (permanent or temporary) of your property is appointed by a court of competent authority; (iii) you make a general assignment or other similar arrangement for the benefit of your creditors; (iv) a final judgment against you remains unsatisfied of record for thirty (30) days or longer; (v) execution is levied against your business or property, or the business or property of any of your affiliates that have entered into Franchise Agreements with us; (vi) a suit to foreclose any lien or mortgage against premises or equipment is instituted against you and not dismissed within thirty (30) days, or is not in the process of being dismissed; (vii) you fail to timely meet any of your obligations set forth in the Development Schedule or you fail to comply with our requirements for securing real estate for any Basecamp Fitness Studio; (viii) you or any of your affiliates open any Basecamp Fitness Studio before that person or entity
has signed a Franchise Agreement with us for that studio in the form we provide; (ix) you fail to comply with any other provision of this Agreement, or your or any of your affiliates fail to comply with any other agreement you or they have with us or our affiliates and do not correct the failure within thirty (30) days after written notice of that failure is delivered to the breaching party (except that if the failure to comply is the third failure to comply with any provision of any agreement that you or any of your affiliates have with us or an affiliate of ours within any twelve (12) consecutive month period, then we need not provide any opportunity to cure the default); or (x) we have delivered to you or any of your affiliates a notice of termination of a Franchise Agreement in accordance with its terms and conditions.
Rights and Duties of Parties Upon Termination or Expiration.
Upon termination or expiration of this Agreement, all rights granted to you under this Agreement will automatically terminate, and:
- A.
All remaining rights granted to you to develop Basecamp Fitness Studios under this Agreement will automatically be revoked and will be null and void and shall revert to us.
You will not be entitled to any refund of any fees.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness FDD, the franchise agreement can terminate automatically under certain conditions, primarily related to insolvency, failure to meet obligations, or termination of related agreements. Specifically, the agreement terminates immediately upon written notice without an opportunity to cure if the franchisee becomes insolvent, takes action related to insolvency, or files any action or petition of insolvency. Similarly, the appointment of a receiver for the franchisee's property by a court, or making a general assignment for the benefit of creditors, also triggers immediate termination.
Further, the Basecamp Fitness franchise agreement will automatically terminate if a final judgment against the franchisee remains unsatisfied for 30 days or longer, or if execution is levied against the franchisee's business or property. The institution of a suit to foreclose any lien or mortgage against the premises or equipment that is not dismissed within 30 days also leads to automatic termination. Failing to meet obligations in the Development Schedule or failing to comply with real estate requirements for the Basecamp Fitness Studio can also cause termination.
Additionally, opening a Basecamp Fitness Studio before signing a Franchise Agreement for that studio, failing to comply with any provision of the agreement without correcting it within 30 days after written notice (or immediately for a third failure within 12 months), or receiving a notice of termination of a Franchise Agreement will result in automatic termination. Upon termination or expiration of the agreement, all rights granted to the franchisee are automatically terminated, including the rights to develop Basecamp Fitness Studios, and no fees will be refunded.