Where in the Basecamp Fitness Franchise Agreement can I find details regarding the franchisee's obligations upon termination or expiration?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. You will immediately cease to operate the business franchised under this Agreement, and will not thereafter, directly or indirectly, represent to the public or hold yourself out as a Basecamp Fitness franchisee with respect to such business.
- B. You will immediately and permanently cease to use, in any manner whatsoever, all confidential information, approved Information System and related software, methods, procedures and techniques used by or associated with the System, and the Marks and distinctive forms, slogans, signs, symbols, logos and devices associated with the System, as well as any name, mark, symbol, logo or slogan similar to any of the Marks. You will also specifically authorize us to physically remove any signage bearing any of the Marks that you may fail to remove. Further, if we elect to remove such signage, you will, upon demand, reimburse us for any costs we incur in doing so.
- C. You will immediately return to us the Manual, all copies or excerpts thereof, and any property held or used by you that is owned by us and will cease to use, and either destroy or convey to us, all signs, advertising materials, displays, stationery, forms and any other materials that bear or display the Marks.
- 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.
- E. You will, within ten (10) days after termination or expiration of this Agreement, make such modifications and alterations to your Basecamp Studio premises as may be necessary to distinguish the appearance of the premises from all attributes of the System and will make such specific additional changes thereto as we may request. You agree that, at a minimum, such modifications will include: (i) removal of all signage; (ii) alteration of the color scheme and decor; and (iii) discontinuation of the use of any item containing any of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, Item 22 discusses franchisee obligations upon termination or expiration of the agreement. Specifically, section A states that the franchisee must immediately cease operating the Basecamp Fitness business and cannot represent themselves as a franchisee. Section B requires the franchisee to immediately stop using all confidential information, the approved Information System, related software, methods, procedures, techniques, trademarks, slogans, signs, symbols, logos, and devices associated with the Basecamp Fitness system.
Section C requires the franchisee to return the Manual and any other property owned by Basecamp Fitness. The franchisee must also stop using and either destroy or hand over all signs, advertising materials, displays, stationery, forms, and other materials displaying Basecamp Fitness's trademarks. Section D requires the franchisee to cancel any assumed name registrations containing the Basecamp Fitness trademarks and stop using the trademarks on any Technology Platforms. It also notes that continued use of the trademarks after termination or expiration will be considered an "exceptional case" under federal trademark law, potentially leading to treble damages, costs, and attorneys' fees.
Finally, Section E states that within ten days of termination or expiration, the franchisee must modify the Basecamp Studio premises to differentiate its appearance from the Basecamp Fitness system. These modifications must include removing all signage, altering the color scheme and decor, and discontinuing the use of any item containing Basecamp Fitness's trademarks. These obligations are fairly standard in franchising to protect the brand and ensure a clean break between the franchisee and the franchise system.