What general release must a Basecamp Fitness franchisee sign and deliver to renew their franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- at the time you sign the Franchise Agreement to renew your franchise, you sign and deliver to us a general release, in the form we prescribe, releasing, to the fullest extent permitted under the laws of the state where your Basecamp Studio is located, all claims that you may have against us and our affiliates and our respective current and former officers, directors, shareholders, employees, insurers, consultants, contractors and agents, in both their corporate and individual capacities.
| In consideration of the agreement of BASECAMP FITNESS FRANCHISOR LLC ("Franchisor") to allow ("Franchisee") to [RENEW OR TRANSFER] its Franchise Agreement dated between Franchisee and Franchisor ("Agreement"), Franchisee hereby releases and forever discharges Franchisor, and its affiliates, as well as their current or former members, directors, officers, employees and agents, in their corporate and individual capacities, and their respective heirs, personal representatives, successors and assigns, from any and all claims Franchisee may have against such parties known and unknown, foreseen and unforeseen, from the beginning of time to the date hereof, whether in law or in equity, including, but not limited to, any claims arising out of the offer or sale of any franchise to Franchisee, and any matters arising under the Agreement or under any other agreement between Franchisee and Franchisor or its affiliates. |
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| The general release does not apply with respect to claims arising under the Washington Franchise Investment |
| Protection Act, RCW 19.100, and the rules adopted thereunder. |
The Franchise Agreement requires Franchisee to execute a general release of claims upon renewal or transfer of the Franchise Agreement.
California Corporations Code Section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order thereunder is void.
Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 - 20043)).
To the extent required by such laws, Franchisee shall not be required to execute a general release.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, a franchisee must sign and deliver a general release to renew their franchise. This release, in a form prescribed by Basecamp Fitness, absolves Basecamp Fitness and its affiliates from all claims the franchisee may have against them. This includes claims against their officers, directors, shareholders, employees, insurers, consultants, contractors, and agents, in both their corporate and individual capacities, to the fullest extent permitted by the laws of the state where the Basecamp Studio is located.
This requirement means that upon renewal, a franchisee essentially waives their right to sue Basecamp Fitness for any past grievances. The release covers all possible claims, whether known or unknown, that the franchisee may have against Basecamp Fitness. This is a significant commitment, as it potentially forfeits legal recourse for issues that may arise from the beginning of the franchise relationship up to the point of renewal.
However, the California Addendum to the Franchise Agreement states that California Corporations Code Section 31512 voids any waiver of rights under the Franchise Investment Law or the Franchise Relations Act. Therefore, to the extent required by such laws, a Basecamp Fitness franchisee in California may not be required to execute a general release. Similarly, the general release does not apply to claims arising under the Washington Franchise Investment Protection Act.
Prospective franchisees should carefully consider the implications of signing a general release, especially concerning potential future legal claims. It would be prudent to consult with a legal professional to fully understand the scope and impact of the release before renewing the franchise agreement. Franchisees should also be aware of any state-specific laws that may limit the enforceability of such releases.