How far must the mediation location be from Basecamp Fitness' offices?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | ||
|---|---|---|
| Franchise or Other | ||
| Provision | Agreements | Summary |
| n. Our right of first refusal | Section 19 – Franchise | We have the right to match any offer for your business. |
| to acquire your business | Agreement | |
| o. Our option to purchase your business | Section 16 – Franchise Agreement | We can purchase from you at book value all or a portion of the assets of your Basecamp Studio and take an assignment of your leases, upon the termination or expiration without renewal of your Franchise Agreement. |
| p. Your death or disability | Section 13.B – Franchise Agreement Area Development Agreement–NotApplicable | Your heirs can assume your rights, but if they do, they must meet the transfer requirements. |
| q. Non-competition covenants during the term of the franchise | Section 17.A – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord), wherever located. |
| r. Non-competition | Section 17.B – Franchise | No involvement in any fitness center that offers interval |
| covenants after the | Agreement and Section 9 – | training or high-intensity guided workouts (including as |
| franchise is terminated or | Area Development | creditor or landlord) for 2 years in your Protected Territory |
| expires | Agreement | or within a 10 mile radius of any BasecampStudio. |
| s. Modification of the agreement | Sections 8.M and 20.H, 20.K – Franchise Agreement Section 9 – Area Development Agreement | No modifications without consent by all parties, but our manuals are subject to change. No modifications without consent of all parties. |
| t. Integration/merger clause | Section 20.E., K – Franchise Agreement, Section 9 – Area Development Agreement | Only the terms of the Franchise Agreement, Area Development Agreement and other written agreements are binding (subject to applicable state law). Any representations or promises outside of this Disclosure Document and the Franchise Agreement/Area Development Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Section 18 – Franchise Agreement, Section 8 – Area Development Agreement | Subject to state law, except for certain disputes, all disputes must be mediated, and if not settled by mediation, are then subject to arbitration. |
| v. Choice of forum | Section 18.E – Franchise Agreement, Section 9 – Area Development Agreement | Subject to state law, mediation (at a location determined by the mediator which is at least 100 miles from either of our offices) and arbitration in Minneapolis, Minnesota. Subject to state law, any litigation must be brought in the United States District Court for the District of Minnesota or the Ramsey County District Court, Minnesota. |
| w. Choice of law | Section 20.D – Franchise Agreement, Section 9 – Area Development Agreement | Subject to state law, Minnesota law generally applies. Section in Franchise or Other |
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, dispute resolution involves mediation and arbitration. The mediation location will be determined by the mediator, but it must be at least 100 miles from either the franchisee's or Basecamp Fitness's offices. If mediation does not resolve the dispute, arbitration will occur in Minneapolis, Minnesota. Any litigation must be brought in the United States District Court for the District of Minnesota or the Ramsey County District Court, Minnesota. This is subject to state law.
For a prospective Basecamp Fitness franchisee, this means that if a dispute arises, they may be required to travel a significant distance for mediation, potentially incurring travel and accommodation costs. The franchisee should also consider the cost and inconvenience of arbitrating or litigating in Minnesota if mediation fails. These dispute resolution terms are common in franchise agreements, but franchisees should carefully weigh the potential costs and logistical challenges.
The FDD also indicates that Minnesota law generally applies to the franchise agreement, subject to state law. This could have implications for how disputes are interpreted and resolved, potentially requiring the franchisee to become familiar with Minnesota law. Franchisees are encouraged to seek legal counsel to understand the full implications of these dispute resolution and choice of law provisions, especially considering that state laws may vary and could affect the enforceability of certain clauses.
It is important to note that these dispute resolution terms are subject to state law, which means that certain provisions may not be enforceable in all states. For example, the FDD includes specific addenda for Hawaii and Maryland, which modify certain provisions of the franchise agreement to comply with state law. Prospective franchisees should carefully review any state-specific addenda to the FDD to understand how the dispute resolution terms may be modified in their state.