Why did the Franchisor obtain a Surety Bond for Basecamp Fitness franchises, and where is it filed?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ything to the contrary set forth in the Basecamp Fitness Franchisor LLC Area Development Agreement, the following provisions shall supersede and apply to all Basecamp Fitness franchises sold to residents in the state of Maryland:
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- Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, we secured a surety bond in the amount of $291,000 from Capitol Indemnity Corporation. A copy of the bond is on file at the Maryland Office of the Attorney General, Securities Division, 200 St. Paul Place, Baltimore, Maryland 21202.
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Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a surety bond was required in certain states due to the franchisor's or its guarantor's financial condition. Specifically, the Maryland Securities Commissioner mandated a financial assurance due to the franchisor's financial condition, leading Basecamp Fitness to secure a $291,000 surety bond from Capitol Indemnity Corporation. A copy of this bond is filed at the Maryland Office of the Attorney General, Securities Division, located in Baltimore, Maryland.
Similarly, in Illinois, the Office of the Attorney General imposed a financial assurance requirement, also resulting in Basecamp Fitness obtaining a surety bond. This requirement was triggered by the financial condition of the franchisor's guarantor. The surety bond for Illinois franchises is on file with the Office of the Illinois Attorney General.
For a prospective Basecamp Fitness franchisee, this means that the financial stability of the franchisor or its guarantor is a factor that state regulators are monitoring. The surety bond serves as a form of protection for franchisees in these states, ensuring that funds are available to cover potential losses if Basecamp Fitness fails to meet its financial obligations. Franchisees in Maryland and Illinois can access the bond information at the respective Attorney General's offices. It is important for potential franchisees to understand the financial health of the franchisor and the implications of these bonds for their investment.