How will the location for mediation be determined if Basecamp Fitness and the franchisee do not agree otherwise?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the arbitration, which is a method of alternative dispute resolution, will occur at the American Arbitration Association office in Minneapolis, Minnesota. This is significant because it dictates where any binding arbitration between the franchisee and Basecamp Fitness will take place.

For a prospective franchisee, this means that if a dispute arises that leads to arbitration, they will likely need to travel to Minneapolis, Minnesota, regardless of where their Basecamp Fitness studio is located. This could involve significant travel expenses and time away from their business. It is also important to note that the franchisee will bear all costs of arbitration if Basecamp Fitness secures any relief against them in the arbitration, or is successful in defending a claim the franchisee brings against them in the arbitration.

This arrangement may present a disadvantage for franchisees located far from Minneapolis, as it increases the cost and complexity of resolving disputes. Franchisees should consider this factor, along with potential legal costs, when evaluating the overall financial implications of investing in a Basecamp Fitness franchise. Prospective franchisees are encouraged to consult with legal counsel to fully understand the implications of this clause, especially in light of state and federal laws regarding venue and arbitration.