What law governs the termination of the Basecamp Fitness franchise agreement by the franchisee?
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 and apply to all Basecamp Fitness franchises offered and sold in the state of California:
This California Addendum is only applicable if you are a resident of California or if your business is located in California.
The California Franchise Relations Act (Business and Professions Code Section 20000 through 20043), provides franchisees with additional rights concerning termination and non-renewal of the Franchise Agreement and certain provisions of the Franchise Agreement relating to termination and nonrenewal may be superseded by the Act.
There may also be court decisions which may supersede the Franchise Agreement and your relationship with Franchisor, including the areas of termination and renewal of Franchisee's franchise.
If the Franchise Agreement is inconsistent with the law, the law will control.
The Franchise Agreement requires Franchisee to execute a general release of claims upon renewal or transfer of the Franchise Agreement.
California Corporations Code Section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order thereunder is void.
Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 - 20043)).
To the extent required by such laws, Franchisee shall not be required to execute a general release.
The Franchise Agreement requires application of the laws and forum of Minnesota.
This provision may not be enforceable under California law.
The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the franchise.
This provision may not be enforceable under California law.
The provision in the Franchise Agreement which terminates the franchise upon the bankruptcy of the Franchisee may not be enforceable under Title 11, United States Code, Section 101.
The Franchise Agreement contains a waiver of punitive damages and jury trial provision.
These waivers may not be enforceable under California law.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the laws governing the termination of the franchise agreement by the franchisee depend on the franchisee's location. For franchisees in California, the California Franchise Relations Act (Business and Professions Code Section 20000 through 20043) provides additional rights concerning termination and non-renewal of the Franchise Agreement, and certain provisions of the Franchise Agreement relating to termination and nonrenewal may be superseded by the Act. Furthermore, court decisions may also supersede the Franchise Agreement in areas of termination and renewal. If the Franchise Agreement is inconsistent with California law, the law will control.
For franchisees in Illinois, the Illinois Franchise Disclosure Act governs the franchisee's rights upon termination and non-renewal, as outlined in Sections 19 and 20 of the Act. Additionally, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although arbitration may take place outside of Illinois.
For franchisees in New York, the Franchise Agreement is revised to ensure that all rights arising in the franchisee's favor from the provisions of Article 33 of the GBL of the State of New York and the regulations issued thereunder remain in force, satisfying the non-waiver provisions of GBL Section 687.4 and 687.5. The FDD does not specify which law governs the termination of the Basecamp Fitness franchise agreement for franchisees in other states, but it does state that the franchisee shall have the right to terminate the Franchise Agreement to the extent allowed under applicable law.