Within how many days after termination must a Basecamp Fitness franchisee pay all amounts owed?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- F.
Within five (5) days after termination, you will pay to us all amounts owed to us under this Agreement, including the Royalty Fees that would be due through the date this Agreement was scheduled to expire.
Further, if this Agreement is terminated for any reason other than as a result of a material breach of this Agreement by us that is not cured within thirty (30) days following notice from you, such sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by us as a result of the default and the termination.
You agree that until such obligations are paid in full, you hereby grant us a lien against any and all of the personal property, furnishings, equipment, signs, fixtures and inventory owned by you and located on your Basecamp Studio premises on the date this Agreement terminates or expires and authorize us to file financing statements and other documents we deem appropriate to perfect such lien.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee must pay all outstanding amounts within five days of termination. This includes all amounts owed under the Franchise Agreement, including Royalty Fees that would have been due through the original expiration date of the agreement.
Furthermore, if the termination occurs for any reason other than a material breach by Basecamp Fitness that remains uncured after 30 days' notice from the franchisee, the franchisee is also responsible for all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Basecamp Fitness due to the default and termination.
To secure these obligations, the franchisee grants Basecamp Fitness a lien against all personal property, furnishings, equipment, signs, fixtures, and inventory located at the Basecamp Fitness studio premises on the date of termination or expiration. This allows Basecamp Fitness to file financing statements and other documents to perfect this lien, ensuring their claim is protected. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's financial interests upon termination.