Under what circumstances will Basecamp Fitness's withholding of approval be considered reasonable?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Wherever our consent or approval is required in this Agreement, unless the provision specifically indicates otherwise, we have the right to withhold our approval in our discretion, for any reason, or for no reason.
When the terms of this Agreement specifically require that we not unreasonably withhold our approval or consent, if you are in default or breach under this Agreement, any withholding of our approval or consent will be considered reasonable.
Our approvals and consents will not be effective unless given in writing.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness has broad discretion in granting approvals. However, there are specific circumstances under which withholding approval is explicitly deemed reasonable.
Specifically, if a Basecamp Fitness franchisee is in default or breach of the Franchise Agreement, any withholding of approval or consent by Basecamp Fitness will be considered reasonable. This means that if the franchisee violates any terms of the agreement, Basecamp Fitness can deny approvals without needing to provide further justification.
It is important to note that any approvals or consents given by Basecamp Fitness must be in writing to be effective. This requirement protects both the franchisor and franchisee by ensuring a clear record of what was approved and agreed upon. Franchisees should pay close attention to the terms of the Franchise Agreement to avoid being in default or breach, as this could impact their ability to obtain necessary approvals from Basecamp Fitness.