For how long must a transferring Basecamp Fitness franchisee indemnify Basecamp Fitness against claims brought by the transferee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall have executed an agreement in form satisfactory to us in which you agree to: (i) release any claims you has against us and our affiliates; (ii) subordinate any claims you may have against the transferee to any amounts owed by the transferee to us; (iii) comply with the post-term obligations referenced in this Agreement, including the non-competition and confidentiality provisions; and (iv) indemnify us against all claims brought against us by the transferee for a period of three (3) years following the transfer;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee who transfers their franchise must indemnify Basecamp Fitness against any claims brought by the new franchisee (the transferee) for a period of three years following the transfer.
This requirement means that if the new franchisee sues Basecamp Fitness within three years of the transfer, the original franchisee is responsible for protecting Basecamp Fitness and covering any costs or damages resulting from the lawsuit. This indemnification clause is a significant obligation for the transferring franchisee.
This provision protects Basecamp Fitness from potential liabilities arising from the transfer of the franchise. It ensures that the transferring franchisee remains responsible for any issues or misrepresentations that may have occurred during their ownership and operation of the franchise, even after the transfer is complete. Prospective franchisees should carefully consider this obligation and seek legal advice to understand the full scope of their potential liability when transferring a Basecamp Fitness franchise.