Does the Basecamp Fitness Franchise Agreement specify any exceptions to the cumulative rights of either party?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent required by the Minnesota Franchise Act, Franchisor will protect your rights to use the trademarks, service marks, trade names, logos and other commercial symbols, or indemnify you from any loss, costs or expenses arising out of any claim, suit or demand regarding your use of the marks, provided you are using the Names and Marks in accordance with this Agreement.
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- Franchisor shall not require Franchisee to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22, provided that the foregoing shall not bar the voluntary settlement of disputes.
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- No statement, questionnaire, or acknowledgment signed or agreed to by Franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by the Franchisor, franchise seller, or other person acting on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
BASECAMP FITNESS FRANCHISOR LLC Its: Its:
NEW YORK ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Franchise Agreement, the following provisions shall supersede any inconsistent provisions and apply to all Basecamp Fitness franchises offered and sold in the state of New York:
This New York Addendum is only applicable if you are a resident of New York or if your business will be located in New York.
- Section 8.M of the Franchise Agreement is revised to include the following:
Revisions to the manual will not unduly affect your obligations, including economic requirements, under this Agreement.
- Section 13.A of the Franchise Agreement is revised to include the following:
The Franchisor will not make an assignment except to an assignee who, in the Franchisor's good faith judgment, is willing and able to assume its obligations under the Agreement.
- Section 15 of the Franchise Agreement is modified by the addition of the following at the end of such section:
In addition, the Franchisee shall have the right to terminate the Franchise Agreement to the extent allowed under applicable law.
- Sections 18.E, 18.F, 18.G and 18.H of the Franchise Agreement are revised to include the following language:
Provided, however, that all rights arising under Franchisee's favor from the provisions of Article 33 of the GBL of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Section 687.4 and 687.5 be satisfied.
BASECAMP FITNESS FRANCHISOR LLC Its: Its:
NORTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Disclosure Document, the following provisions shall supersede any inconsistent provisions and apply to all Basecamp Fitness franchises offered and sold in the state of North Dakota:
This North Dakota Addendum is only applicable if you are a resident of North Dakota or if your business will be located in North Dakota.
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- Sections 16.F and 18.A of the Franchise Agreement are amended to provide that the prevailing party in any enforcement action is entitled to recover all costs and expenses, including attorneys' fees.
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- Section 16.F of the Franchise Agreement is modified to delete any requirement that franchisee consent to termination penalties or liquidated damages.
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- Section 17.B of the Franchise Agreement is amended by adding the following language at the end:
Covenants not to compete, such as those mentioned in this Section 17.B are generally considered unenforceable in the state of North Dakota.
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- Sections 18.F and 18.G of the Franchise Agreement are deleted in their entirety.
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- Section 18.E of the Franchise Agreement is modified to delete any requirement that franchisee consent to the jurisdiction of court located outside of North Dakota.
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- Section 20.D of the Franchise Agreement is amended to provide that the Franchise Agreement will be governed by the laws of the State of North Dakota.
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- No statement, questionnaire, or acknowledgment signed or agreed to by Franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by the Franchisor, franchise seller, or other person acting on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
BASECAMP FITNESS FRANCHISOR LLC Its: Its:
RHODE ISLAND ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Franchise Agreement, the following provisions shall supersede and apply to all Basecamp Fitness franchises sold to residents in the state of Rhode Island:
This Rhode Island Addendum is only applicable if you are a resident of Rhode Island or if your business will be located in Rhode Island.
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Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, several addenda and clauses address exceptions to the cumulative rights of both the franchisor and franchisee, particularly concerning state-specific laws and protected territories. For franchisees in Minnesota, the addendum ensures that the franchise agreement does not override rights provided under Minnesota Statutes, Chapter 80C, including the franchisee's rights to procedures, forums, or remedies available under state law. This addendum also mandates that Basecamp Fitness comply with Minnesota statutes regarding termination and nonrenewal notices, providing franchisees with 90 days' notice for termination (with 60 days to cure) and 180 days' notice for nonrenewal, except in specific cases. Furthermore, Basecamp Fitness is obligated to protect the franchisee's rights to use trademarks and provide indemnification for claims arising from their use, provided the franchisee adheres to the agreement. These stipulations ensure that Minnesota franchisees retain their statutory rights and protections, superseding any conflicting terms in the standard franchise agreement.
The New York addendum modifies specific sections of the franchise agreement to provide additional protections for franchisees. Revisions to the manual must not unduly affect the franchisee's obligations, including economic requirements. Basecamp Fitness is restricted from making assignments of the agreement unless the assignee is willing and able to assume the franchisor's obligations. Additionally, the franchisee has the right to terminate the franchise agreement to the extent allowed under applicable law. Sections 18.E, 18.F, 18.G, and 18.H are revised to ensure that all rights arising in the franchisee's favor under Article 33 of the General Business Law (GBL) of New York remain in force, satisfying the non-waiver provisions of GBL Sections 687.4 and 687.5. These modifications collectively strengthen the franchisee's position by preventing overbearing changes, ensuring responsible assignments, and upholding statutory rights.
The North Dakota addendum further modifies the franchise agreement to align with state laws. It amends Sections 16.F and 18.A to allow the prevailing party in any enforcement action to recover all costs and expenses, including attorneys' fees. Section 16.F is also modified to remove any requirement that the franchisee consent to termination penalties or liquidated damages. Additionally, Section 17.B is amended to note that covenants not to compete are generally considered unenforceable in North Dakota. These changes protect franchisees from potentially unfair financial burdens and restrictive covenants, ensuring compliance with North Dakota's legal environment.
Basecamp Fitness also reserves specific rights, such as the ability to sell products and services under the Basecamp Fitness name through any channel of distribution, including the internet, even within the franchisee's protected territory. However, the rights granted to the franchisee are personal and limited to the franchised location, with no right to delegate, subfranchise, or sublicense without written consent. The initial term of the agreement is six years, with a renewal option for an additional five years, subject to meeting certain conditions, including providing written notice, complying with all agreements, renovating the studio, paying a $5,000 renewal fee, and signing a general release. Failure to comply with these renewal provisions allows Basecamp Fitness to operate or license another studio in the protected territory and solicit the existing studio's members and customers. These reservations and limitations define the scope of the franchisee's rights and obligations, balancing the interests of both parties within the franchise relationship.