What is the limit of Healthy Contributions' obligations to a Basecamp Fitness client?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Client agrees that HC has no independent or derivative liability to the Client for any reimbursements, fees or payments due to Client from any Program Provider under any Fitness Incentive Program and that HC's obligations to Participating Facility are limited to disbursing monies to Client received by HC from the Program Provider as directed by the Program Provider.
Client acknowledges that HC has made no warranty, guarantee or representations to Client concerning the level, if any, of compensation or profit that Client may derive from participating in any Fitness Incentive Program.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Healthy Contributions (HC) acts as a payment processor and program administrator for Fitness Incentive Programs offered by various Program Providers. As a client participating in these programs, the franchisee agrees to HC's terms and conditions. HC's responsibilities include providing an electronic platform for data entry, collecting program-specific data, and disbursing reimbursements and fees as directed by the Program Provider.
However, the agreement explicitly states that HC has no independent liability to the client for reimbursements, fees, or payments owed by any Program Provider. HC's obligation is limited to disbursing funds received from the Program Provider as instructed. This means that if a Program Provider fails to provide the necessary funds, HC is not responsible for covering those payments to the Basecamp Fitness franchisee.
Furthermore, HC makes no guarantees or representations regarding the level of compensation or profit a client may derive from participating in any Fitness Incentive Program. The client also acknowledges that the relationship with HC is non-exclusive, allowing both parties to engage with other businesses offering similar services. This arrangement means that Basecamp Fitness franchisees bear the risk of the Program Provider's financial stability and ability to meet its payment obligations, and cannot hold Healthy Contributions liable for any shortfalls.
Prospective Basecamp Fitness franchisees should carefully evaluate the terms and conditions of the Healthy Contributions Agreement, particularly the limitations of HC's liability, to fully understand their financial risks and responsibilities when participating in Fitness Incentive Programs. It would be prudent to inquire with Basecamp Fitness about the typical financial performance of these incentive programs and the due diligence process for selecting Program Providers.