Under what conditions will Basecamp Fitness provide a notice and opportunity to cure a default?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
With Notice and Failure to Cure.
Except for those defaults provided for under Section 14.A above, you will be in default hereunder for any failure to maintain or comply with any of the terms, covenants, specifications, standards, procedures or requirements imposed by this Agreement or any other agreement you or any of your affiliates have with us or with any of our affiliates, or in any Manual, policy or procedure statement or other written document provided by us, or to carry out the terms of this Agreement in good faith.
Before we terminate this Agreement as a result of such defaults, we will provide you with thirty (30) days written notice of your default.
If the defaults specified in such notice are not cured within the thirty (30) day period (either by you or by any financial institution that has loaned money to you or to your business), we may terminate this Agreement upon the expiration of the thirty (30) day period without further notice.
Such defaults will include, without limitation, the occurrence of any of the following events:
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- you fail to construct or remodel your Basecamp Studio within the time provided for in this Agreement;
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- you fail, refuse, or neglect to promptly pay when due any monies owing to us, to our affiliates, or to other creditors you have, or to submit the financial or other information required under this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee will generally receive a 30-day written notice and opportunity to cure a default, except for specific instances outlined in Section 14.A of the franchise agreement. This means that for most failures to comply with the terms of the agreement, the franchisee will have a chance to correct the issue before Basecamp Fitness terminates the agreement. This includes failures to meet standards, procedures, or requirements in the agreement, manuals, policies, or other written documents, as well as failing to carry out the terms of the agreement in good faith.
However, this opportunity to cure does not apply to all defaults. If a Basecamp Fitness franchisee is liquidated or dissolved, fails to construct the studio according to approved plans and does not remedy deficiencies within 30 days of notice, fails to operate for seven consecutive days (unless due to specific events like fire or flood), abandons the studio, makes an unauthorized transfer, engages in fraudulent conduct, is convicted of a felony, receives three or more notices of material violation within a 12-month period, or misuses the Marks without ceasing within 24 hours of notice, Basecamp Fitness can terminate the agreement without any opportunity to cure the default.
The 30-day cure period allows a franchisee time to address and rectify the default, potentially avoiding termination. However, the franchisee bears the risk of immediate termination without a cure period for the more severe or repeated violations listed in Section 14.A. A franchisee should carefully review the franchise agreement to understand what constitutes a default and the specific cure rights, if any, associated with each type of default.
The agreement specifies that defaults requiring a 30-day cure period include failing to construct or remodel the Basecamp Studio within the agreed timeframe, failing to promptly pay monies owed to Basecamp Fitness, its affiliates, or other creditors, or failing to submit required financial or other information. It is important to note that even with a notice and cure period, failure to cure the default will result in the termination of the agreement. Additionally, if a franchisee's act or omission in operating the Basecamp Studio results in a continuing violation of any applicable law, ordinance, rule, or regulation of a governmental body, and damages the goodwill associated with the System or the Marks, Basecamp Fitness has the right to terminate the Agreement if the franchisee does not cure such default within twenty-four (24) hours after notice from them.