If Basecamp Fitness obtains insurance for a franchisee, what must the franchisee do?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee fails to obtain and maintain the required insurance coverage, Basecamp Fitness has the right to obtain the insurance on behalf of the franchisee. In this case, the franchisee is obligated to pay Basecamp Fitness their current insurance handling fee, in addition to the cost of the insurance premiums paid by Basecamp Fitness.

This clause ensures that all Basecamp Fitness locations meet the minimum insurance requirements set by the franchisor, protecting both the franchisee and the franchisor from potential liabilities. It also highlights the importance of franchisees understanding and adhering to the insurance requirements outlined in the franchise agreement.

For a prospective franchisee, this means carefully reviewing the insurance requirements and proactively securing the necessary coverage. Failure to do so could result in additional fees and the franchisor taking control of the insurance procurement process. Franchisees should clarify the specifics of the 'then current insurance handling fee' with Basecamp Fitness to fully understand the potential costs involved.