What is the condition for a release or waiver of rights to be valid for a Basecamp Fitness franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise or Other | |||
| Provision | Agreements | Summary | |
| i. | Your obligations on termination/non-renewal | Section 16 – Franchise Agreement Section 6 – Area Development Agreement | Stop operating the Basecamp Studio, stop using our names and marks, return information to us, assign to us or cancel certain registrations, listings, telephone numbers, websites and domain names, and pay all amounts you owe us, comply with your obligations if we exercise our purchase option. You lose all remaining rights to develop Basecamp Studios. |
| j. | Assignment of contract by us | Section 13.A – Franchise Agreement and Section 7.A – Area Development Agreement | No restriction on our right to assign. |
| k. "Transfer" by you – defined | Section 13.B – Franchise Agreement and Section 7.C – Area Development Agreement | Includes transfer of contract or business, or transfer of majority control of the Franchise Agreement or of the business. | |
| l. | Our approval of transfer by franchisee | Section 13.B – Franchise Agreement Section 7.C – Area Development Agreement | We have the right to approve all transfers, but will not withhold our consent if all of the requirements for the transfer are met. We have the right to approve, but you may not transfer only a portion of your rights. |
| m. Conditions for our approval of transfer | Section 13.B – Franchise Agreement Section 7.C – Area Development Agreement | Conditions include: (i) You must be in compliance with the Franchise Agreement and provide us with all information we require regarding the proposed transaction; (ii) transferee must meet our requirements and sign a new franchise agreement on our then-current form for the remaining term of your agreement (which may contain materially different terms and conditions then in your agreement, but we will not require the transferee to pay us a new initial franchise fee.); (iii) payment of any broker fees or commissions and you must also pay a transfer fee and sign a release (subject to state law); (iv) transferee mus |
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, a franchisee must sign a release subject to state law as one of the conditions for the franchisor's approval of a transfer. This requirement is part of a broader set of conditions that must be met before Basecamp Fitness will approve the transfer of a franchise to a new owner.
This condition ensures that Basecamp Fitness is protected from future claims or liabilities related to the transferred franchise. By signing a release, the franchisee waives certain rights and agrees not to pursue legal action against the franchisor regarding the franchise agreement or the operation of the franchise. The phrase "subject to state law" indicates that the enforceability and specific terms of the release may vary depending on the laws of the state in which the franchise is located.
For a prospective Basecamp Fitness franchisee, this means that if they decide to sell their franchise, they will be required to sign a release as part of the transfer process. It is important for franchisees to carefully review the terms of the release with legal counsel to understand the rights they are waiving and the potential implications of signing the release. This is a fairly standard practice in franchising, as franchisors typically want to ensure a clean break and avoid future disputes when a franchise changes ownership.