If Basecamp Fitness removes signage after termination, who is responsible for reimbursing the costs?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. You will immediately and permanently cease to use, in any manner whatsoever, all confidential information, approved Information System and related software, methods, procedures and techniques used by or associated with the System, and the Marks and distinctive forms, slogans, signs, symbols, logos and devices associated with the System, as well as any name, mark, symbol, logo or slogan similar to any of the Marks. You will also specifically authorize us to physically remove any signage bearing any of the Marks that you may fail to remove. Further, if we elect to remove such signage, you will, upon demand, reimburse us for any costs we incur in doing so.
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 fails to remove the required signage bearing Basecamp Fitness's marks after the termination of their franchise agreement, Basecamp Fitness has the right to remove the signage themselves. In this case, the franchisee is responsible for reimbursing Basecamp Fitness for all costs incurred during the removal process.
This means that upon termination, a franchisee must promptly remove all Basecamp Fitness branding from their studio. Failure to do so not only allows Basecamp Fitness to take action and remove the signage, but also obligates the franchisee to cover the expenses for that removal. This could include labor, transportation, and disposal fees.
This provision protects Basecamp Fitness's brand identity and ensures that terminated franchisees do not continue to represent themselves as part of the Basecamp Fitness system. It also serves as a financial disincentive for franchisees to delay or neglect the removal of signage after termination, as they will ultimately be responsible for the costs if Basecamp Fitness has to step in. Franchisees should be aware of this potential expense and factor it into their plans for exiting the franchise, whether through choice or termination.