If Basecamp Fitness successfully obtains an injunction against a franchisee, who is responsible for covering the costs of prosecuting the action?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the franchisee will bear all costs of arbitration if Basecamp Fitness secures any relief against them in arbitration. This includes situations where Basecamp Fitness is successful in defending a claim brought by the franchisee against them in arbitration. This condition is outlined within the franchise agreement and highlights the franchisee's financial responsibility in such legal disputes.

This stipulation means that if a Basecamp Fitness franchisee initiates a claim against the franchisor and is unsuccessful, they will be responsible for covering all arbitration costs. Similarly, if Basecamp Fitness seeks relief against a franchisee through arbitration and is successful, the franchisee must cover these costs. This arrangement places a significant financial burden on the franchisee in the event of an unsuccessful legal challenge or a successful action by the franchisor.

It is important for prospective Basecamp Fitness franchisees to fully understand this clause and its potential financial implications. Franchisees should consider this when evaluating the risks associated with entering into the franchise agreement. Seeking legal counsel to review the franchise agreement and understand the full scope of these financial responsibilities is advisable.