Does the Basecamp Fitness franchise agreement include a waiver of punitive damages?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the franchise agreement does contain a waiver of punitive damages and a jury trial provision. However, the FDD also states that these waivers may not be enforceable under California law. This information is found within the California Addendum to the franchise agreement, which supersedes the standard agreement for franchisees operating in California.

For a prospective Basecamp Fitness franchisee, this means that while the standard franchise agreement includes a waiver of the right to seek punitive damages and a jury trial, this waiver might not hold up in court if the franchisee is located in California. Punitive damages are awarded to punish a defendant for particularly egregious behavior, and the ability to pursue them can be a significant legal right.

The enforceability of such waivers can vary by state, so it's essential for franchisees to understand their local laws. The FDD highlights this by specifically mentioning that the waivers may not be enforceable in California. This suggests that franchisees in other states should also investigate the enforceability of these waivers in their own jurisdictions.

Prospective Basecamp Fitness franchisees should consult with an attorney to fully understand the implications of these waivers and how they might affect their rights and legal options. This is especially important for those considering opening a franchise in California, given the explicit mention of the potential unenforceability of these provisions under California law.