Does the Basecamp Fitness brand have any litigation that requires disclosure in Item 3 of the FDD?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 3: LITIGATION]
ITEM 3 LITIGATION
There is no litigation required to be disclosed in the Item regarding the Basecamp Fitness brand.
The following disclosures relate to our affiliates, TBM and TBMLLC, in connection with the offering of boutique fitness studios that offer barre-based exercise classes under the name The Bar Method®:
Illinois v. The Bar Method Franchising Inc. and The Bar Method Inc. (Case No. 2009CH 0125, Seventh Judicial Circuit of Illinois, filed February 9, 2009). The Illinois Attorney General brought this action against Defendants alleging the agreement between TBM and an Illinois resident that TBM assigned to TBMLLC in January 2008 constituted a franchise that was not registered under the Illinois Franchise Disclosure Act, and that TBM did not provide a franchise disclosure document to the operator as that statute requires. On February 9, 2009, Defendants agreed to the entry of a Final Judgment and Consent Decree in which, while not admitting any liability for any violations, Defendants agreed to the entry of a permanent injunction prohibiting Defendants from offering or selling franchises in Illinois without being registered as a franchisor or failing to provide the franchise disclosure document to residents of Illinois as the Illinois Franchise Disclosure Act requires. TBMLLC also agreed to offer rescission of the agreement to the Illinois operator and to the payment of penalties and costs to the State of Illinois in the amount of $5,000. The Illinois operator did not accept the offer of rescission and its agreement continues in effect.
In the Matter of the Investigation by Andrew Cuomo, Attorney General of the State of New York, of The Bar Method Inc. and Carl Diehl (Assurance No. 08-108). On April 2, 2009, TBM and Mr. Diehl, as its Vice President, entered into an Assurance of Discontinuance ("AOD") under which, without admitting any violation of the law, they agreed to offer rescission of an agreement that TBM signed in New York without being registered to sell franchises in that state. As part of the AOD, TBM and Mr. Diehl agreed to comply with the provisions of the New York Franchises Act and not to sell franchises in New York without a current registration. TBM also paid to the State of New York the sum of $2,500. The New York operator did not accept the offer of rescission and she continues to operate her studio under the agreement.
Source: Item 3 — LITIGATION (FDD pages 13–14)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, there is no litigation required to be disclosed in Item 3 regarding the Basecamp Fitness brand itself. However, the document does disclose litigation involving Basecamp Fitness's affiliates, TBM and TBMLLC, related to the offering of boutique fitness studios under The Bar Method® name.
The litigation involving The Bar Method® includes an action brought by the Illinois Attorney General alleging that TBM offered an unregistered franchise and failed to provide a franchise disclosure document, resulting in a Final Judgment and Consent Decree. TBM agreed to a permanent injunction, offered rescission to the Illinois operator, and paid $5,000 in penalties and costs to the State of Illinois. The operator did not accept the rescission offer.
Additionally, the New York Attorney General investigated The Bar Method Inc. and its Vice President, Carl Diehl, leading to an Assurance of Discontinuance (AOD). Without admitting any violation, they agreed to offer rescission of an agreement signed in New York without proper registration, comply with the New York Franchises Act, and paid $2,500 to the State of New York. The New York operator also declined the rescission offer. While these cases do not directly involve Basecamp Fitness, prospective franchisees should be aware of the legal history of its affiliates, as it may reflect on the overall business practices and compliance standards of the broader organization.