Under what circumstances can a Basecamp Fitness franchisee disclose financial information to a financial institution?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any provision of Section 10.A, at your discretion, you may allow any financial institution that has loaned money to you or to your business to have access to your books and records to confirm your billings, collections, receivables, and any other financial information you have provided to the financial institution.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee can disclose financial information to a financial institution under specific circumstances. The franchise agreement allows a Basecamp Fitness franchisee to provide a financial institution access to their books and records. This is permitted if the financial institution has loaned money to the franchisee or their business.
The purpose of this access is to allow the financial institution to verify the franchisee's billings, collections, receivables, and any other financial information that the franchisee has already provided to them. This clause ensures that Basecamp Fitness franchisees are able to obtain financing for their business while also providing lenders with the necessary assurances regarding the franchisee's financial status.
This provision is fairly standard in franchise agreements, as it enables franchisees to secure necessary funding while giving lenders a mechanism for due diligence and ongoing monitoring of their investment. However, franchisees should be aware that this access is limited to financial institutions that have already provided them with loans, and it is intended solely for the purpose of confirming previously disclosed financial information.