Where will mediation and arbitration take place for disputes with Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ghts under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043)."
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- The Franchise Agreement and Area Development Agreement require application of the laws and forum of Minnesota. This provision may not be enforceable under California law.
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- The Franchise Agreement and Area Development Agreement require binding arbitration. The arbitration will occur at the office of the American Arbitration Association located nearest Basecamp Fitness Franchisor LLC's principal offices (currently, Woodbury, Minnesota). You will bear all costs of arbitration if we secure any relief against you in the arbitration, or are successful in defending a claim you bring against us in the arbitration. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
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- California [Civil Code Section 1671] has statutes which restrict or prohibit the imposition of liquidated damage provisions.
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- The maximum interest rate to be charged in California is 10%.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a 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 any 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.
STATE SPECIFIC ADDENDUM AS REQUIRED BY THE HAWAII FRANCHISE INVESTMENT LAW
Notwithstanding anything to the contrary in the Basecamp Fitness Franchisor LLC Franchise Disclosure Document, the following provisions shall supersede and apply to all Basecamp Fitness franchises offered and sold in the state of Hawaii:
This Hawaii Addendum is only applicable if you are a resident of Hawaii or if your business will be located in Hawaii.
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, arbitration will occur at the American Arbitration Association office nearest to Basecamp Fitness Franchisor LLC's principal offices, which are currently located in Woodbury, Minnesota. This applies to both the Franchise Agreement and the Area Development Agreement. Franchisees may bear all arbitration costs if Basecamp Fitness secures relief against them or successfully defends against a claim the franchisee brings.
However, the FDD includes state-specific addenda that may supersede the standard arbitration terms. For instance, the California Addendum specifies that arbitration will occur at the American Arbitration Association in Minneapolis, Minnesota, and also advises prospective franchisees to seek legal counsel regarding the applicability of California and federal laws to venue restrictions. Similarly, the Illinois Addendum states that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may still take place outside of Illinois.
For franchisees in Maryland, while the Development Agreement states that Minnesota law generally applies, franchisees retain the right to file lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, irrespective of the arbitration obligation. These state-specific provisions highlight the importance of understanding how local laws can modify the standard franchise agreement, particularly concerning dispute resolution.
Prospective franchisees should consult with legal counsel to understand the specific dispute resolution processes and venues applicable to their situation, considering their state of residence and the location of their Basecamp Fitness studio. This is especially important given the potential for bearing arbitration costs and the possible conflicts between the standard agreement and state laws.