What is the choice of forum for litigation with Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
r order thereunder is void. Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043)."
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- The Franchise Agreement and Area Development Agreement require application of the laws and forum of Minnesota. This provision may not be enforceable under California law.
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- The Franchise Agreement and Area Development Agreement require binding arbitration. The arbitration will occur at the office of the American Arbitration Association located nearest Basecamp Fitness Franchisor LLC's principal offices (currently, Woodbury, Minnesota). You will bear all costs of arbitration if we secure any relief against you in the arbitration, or are successful in defending a claim you bring against us in the arbitration. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
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- California [Civil Code Section 1671] has statutes which restrict or prohibit the imposition of liquidated damage provisions.
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- The maximum interest rate to be charged in California is 10%.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the franchise agreement and area development agreement necessitate the application of Minnesota laws and forum. However, this may not be enforceable under California law. For disputes that proceed to arbitration, the location will be at the American Arbitration Association office closest to Basecamp Fitness's main office, which is currently in Woodbury, Minnesota. The franchisee is responsible for all arbitration costs if Basecamp Fitness secures relief or successfully defends against a claim brought by the franchisee.
For franchisees in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act. However, the franchise agreement can stipulate that arbitration occurs outside of Illinois, and Illinois law governs the Area Development Agreement.
For franchisees in Maryland, while the standard agreement might specify a different forum, franchisees can bring a suit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the standard choice of forum. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. Prospective franchisees are encouraged to seek legal counsel to understand how California and federal laws apply to venue restrictions in the franchise agreement.