factual

In which county and state must venue be exclusively held for disputes related to the Basecamp Fitness agreement?

Basecamp_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION]

    1. 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.
    1. 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.

Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Area Development Agreement, the following provisions shall supersede any inconsistent provisions and apply to all Basecamp Fitness franchises offered and sold in the state of Illinois:

    1. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
      1. Illinois law governs the Area Development Agreement.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)

What This Means (2025 FDD)

According to the 2025 Basecamp Fitness Franchise Disclosure Document, the franchise agreement and area development agreement typically require the application of Minnesota law and forum. However, this provision may not be enforceable under California law. For California franchisees, the agreement requires binding arbitration that will occur at the American Arbitration Association office nearest to Basecamp Fitness Franchisor LLC's principal offices, which are currently located in Woodbury, Minnesota. Franchisees will bear all costs of arbitration if Basecamp Fitness secures any relief against them in the arbitration, or if Basecamp Fitness is successful in defending a claim the franchisee brings against them in arbitration.

For franchisees in Illinois, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois, and Illinois law governs the Area Development Agreement.

Prospective franchisees are encouraged to consult with legal counsel to determine the applicability of state and federal laws regarding venue restrictions to a forum outside of their state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.