If litigation is necessary, in which courts must disputes with Basecamp Fitness be brought?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Area Development Agreement, the following provisions shall supersede any inconsistent provisions and apply to all Basecamp Fitness franchises offered and sold in the state of Illinois:
-
- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
-
- Illinois law governs the Area Development Agreement.
-
- Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
-
- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
-
- 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 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.
-
- A Surety Bond has been obtained by the Franchisor. The Surety Bond is on file with the Office of the Illinois Attorney General. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to the Franchisor's guarantor's financial condition.
BASECAMP FITNESS FRANCHISOR LLC Its: Its:
MARYLAND ADDENDUM TO DEVELOPMENT AGREEMENT
Notwithstanding anything 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:
Notwithstanding the standing provisions of this section, you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Notwithstanding anything to the contrary in the Development Agreement, nothing will prevent the Franchisee from filing suit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness FDD, the franchise agreement cannot designate jurisdiction and venue in a forum outside of the State of Illinois for franchises offered and sold in Illinois. However, the franchise agreement may provide for arbitration to take place outside of Illinois.
For Basecamp Fitness franchises sold to residents in Maryland, the FDD states that franchisees may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any such claims must be brought within three years after the grant of the franchise.
These stipulations are important for prospective franchisees as they clarify where legal disputes can be pursued, ensuring that franchisees are aware of their rights and the legal avenues available to them based on the state where the franchise was purchased. This also ensures that Basecamp Fitness complies with state-specific franchise laws, providing a level of protection to franchisees.