What damages can Basecamp Fitness recover if a franchisee continues to use the Marks after termination?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Subject to Section 16.H below, you will take such actions as may be necessary to cancel any assumed name or similar registration that contains the Marks "Basecamp" or "Basecamp Fitness" or any other Mark, and will immediately and permanently refrain from and cease all use of the Marks on or in any Technology Platforms and cancel any Technology Platform you control as we direct. You agree and acknowledge that your continued use of the Marks after the expiration or termination of this Agreement will be without our consent and will constitute an "exceptional case" under federal trademark law (15 U.S.C. § 1117) entitling us to recover treble damages, costs and attorneys' fees.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, if a franchisee continues to use Basecamp Fitness's Marks after the termination or expiration of the Franchise Agreement, Basecamp Fitness can recover significant damages. Specifically, the continued unauthorized use of the Marks constitutes an "exceptional case" under federal trademark law.
This "exceptional case" designation allows Basecamp Fitness to pursue treble damages, which means the franchisee could be liable to pay three times the actual damages suffered by Basecamp Fitness due to the unauthorized use. In addition to treble damages, Basecamp Fitness is also entitled to recover costs and attorneys' fees incurred in pursuing legal action against the franchisee.
This provision serves as a strong deterrent against the unauthorized use of Basecamp Fitness's Marks post-termination, protecting the brand's identity and goodwill. Franchisees should be aware of these potential financial repercussions and take immediate steps to cease all use of the Marks upon termination or expiration of the Franchise Agreement to avoid such penalties.