What law governs the Basecamp Fitness Franchise Agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Franchise Agreement, the following provisions shall supersede any inconsistent provisions and apply to all Basecamp Fitness franchises offered and sold in the state of Illinois:
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- 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.
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- Illinois law governs the Franchise Agreement.
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- Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- 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.
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- 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 the 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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, the governing law for the franchise agreement depends on the franchisee's location. For franchisees in Illinois, Illinois law governs the Franchise Agreement. For franchisees in Washington, the Washington Franchise Investment Protection Act will prevail in the event of a conflict of laws. For franchisees in New York, the New York Addendum specifies certain sections of the Franchise Agreement are revised to include that the Franchisee shall have the right to terminate the Franchise Agreement to the extent allowed under applicable law.
For franchisees in California, certain provisions of the Franchise Agreement may be superseded by the California Franchise Relations Act, and if the Franchise Agreement is inconsistent with the law, the law will control. Additionally, certain provisions in the standard agreement, such as those related to non-compete clauses, waivers of punitive damages, and jury trial provisions, may not be enforceable under California law.
For franchisees in North Dakota, the North Dakota Addendum modifies certain sections of the Franchise Agreement, including those related to attorneys' fees and termination penalties. Covenants not to compete are generally considered unenforceable in North Dakota. These addenda highlight the importance of understanding how state-specific laws can impact the franchise agreement and the franchisee's rights.