factual

Does the Basecamp Fitness Franchise Agreement require a franchisee to consent to a waiver of trial by jury?

Basecamp_Fitness Franchise · 2025 FDD

Answer 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.

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

What This Means (2025 FDD)

The 2025 Basecamp Fitness Franchise Disclosure Document does not explicitly state whether a franchisee is required to consent to a waiver of trial by jury in the Franchise Agreement. However, the document does address dispute resolution through arbitration and mediation. Specifically, it indicates that, subject to state law, disputes must first be mediated and then, if not settled through mediation, are subject to arbitration. The FDD also states that any litigation must be brought in the United States District Court for the District of Minnesota or the Ramsey County District Court, Minnesota. These stipulations are subject to state law.

For prospective Basecamp Fitness franchisees, this means that while the franchise agreement mandates mediation and arbitration for dispute resolution, the enforceability and specific terms can be influenced by state laws. Franchisees should be aware of the dispute resolution processes outlined and how they interact with local regulations.

Given the absence of a direct statement about jury trial waivers, it is important for potential Basecamp Fitness franchisees to seek clarification from the franchisor regarding this specific point. Understanding whether a jury trial waiver is part of the agreement and its implications under the relevant state laws is crucial for making an informed decision.

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.