What happens if Basecamp Fitness is successful in defending any claim brought against it by the franchisee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires binding arbitration.
The arbitration will occur at the office of the American Arbitration Association in Minneapolis, Minnesota.
You will bear all costs of arbitration if we secure any relief against you in the arbitration, or are successful in defending a claim you bring against us in the arbitration.
Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code section 20040.5, Code of Civil Procedure section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee brings a claim against Basecamp Fitness in arbitration, and Basecamp Fitness is successful in defending against that claim, the franchisee will bear all costs of the arbitration. The arbitration will occur at the office of the American Arbitration Association in Minneapolis, Minnesota.
This means that a franchisee initiating arbitration against Basecamp Fitness faces a financial risk. If the arbitrator rules in favor of Basecamp Fitness, the franchisee will be responsible for covering all arbitration costs, which can include filing fees, arbitrator fees, and other administrative expenses. This could potentially amount to a significant financial burden for the franchisee, especially if the arbitration is lengthy or complex.
It is important to note that the Franchise Agreement also contains a waiver of punitive damages and a jury trial provision, although the FDD states that these waivers may not be enforceable under California law. Prospective franchisees are strongly encouraged to seek legal counsel to fully understand the implications of these provisions and the potential financial risks associated with arbitration.