Who controls litigation relating to the Marks for Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Litigation.
You will have no obligation to and will not, without our prior written consent, defend or enforce any of the Marks in any court or other proceedings for or against imitation, infringement, any claim of prior use, or for any other allegation.
You will, however, immediately notify us of any claims or complaints made against you with respect to the Marks and will, at your reasonable expense, cooperate in all respects with us in any court or other proceedings involving the Marks.
We will pay the cost and expense of all litigation incurred by us, including attorneys' fees, specifically relating to the Marks.
We will have the right to control and conduct any litigation relating to the Marks and be entitled to all recovery related to claims with respect to the Marks.
While we are not required to defend you against a claim based on your use of the Marks, we will reimburse you for your liability arising from your authorized use of the Marks.
You will also be required to reimburse us for liability arising out of your unauthorized use of any of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness retains the right to control and conduct any litigation relating to its Marks. This includes the right to manage the legal proceedings and strategies concerning the Marks. Furthermore, Basecamp Fitness is entitled to all monetary recovery related to claims involving the Marks.
For a prospective franchisee, this means that Basecamp Fitness, not the franchisee, will make all decisions regarding any legal disputes involving the brand's trademarks. While the franchisee is required to notify Basecamp Fitness of any claims or complaints related to the Marks and cooperate in legal proceedings at their own expense, they cannot independently defend or enforce the Marks without prior written consent from Basecamp Fitness.
Basecamp Fitness will cover the costs and expenses of all litigation it incurs, including attorney's fees, specifically related to the Marks. However, franchisees are responsible for their own legal costs in cooperating with Basecamp Fitness in such litigation. While Basecamp Fitness is not required to defend a franchisee against claims based on their use of the Marks, they will reimburse the franchisee for liability arising from authorized use of the Marks. Conversely, the franchisee will be required to reimburse Basecamp Fitness for liability arising from unauthorized use of any of the Marks.
This arrangement is typical in franchising, where the franchisor maintains control over its brand and trademarks. It protects the uniformity and integrity of the brand across all franchise locations. Franchisees should be aware of their responsibilities to report any potential infringement or claims and to cooperate with Basecamp Fitness in any legal proceedings, while understanding that ultimate control and financial responsibility for litigation rests with the franchisor.