What was the monetary penalty that TBMLLC, an affiliate of Basecamp Fitness, agreed to pay to the State of Illinois?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
studios that offer barre-based exercise classes under the name The Bar Method®:
Illinois v. The Bar Method Franchising Inc. and The Bar Method Inc. (Case No. 2009CH 0125, Seventh Judicial Circuit of Illinois, filed February 9, 2009). The Illinois Attorney General brought this action against Defendants alleging the agreement between TBM and an Illinois resident that TBM assigned to TBMLLC in January 2008 constituted a franchise that was not registered under the Illinois Franchise Disclosure Act, and that TBM did not provide a franchise disclosure document to the operator as that statute requires. On February 9, 2009, Defendants agreed to the entry of a Final Judgment and Consent Decree in which, while not admitting any liability for any violations, Defendants agreed to the entry of a permanent injunction prohibiting Defendants from offering or selling franchises in Illinois without being registered as a franchisor or failing to provide the franchise disclosure document to residents of Illinois as the Illinois Franchise Disclosure Act requires. TBMLLC also agreed to offer rescission of the agreement to the Illinois operator and to the payment of penalties and costs to the State of Illinois in the amount of $5,000. The Illinois opera
Source: Item 3 — LITIGATION (FDD pages 13–14)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, TBMLLC, an affiliate, agreed to pay $5,000 to the State of Illinois. This payment was part of a Final Judgment and Consent Decree entered on February 9, 2009, following an action brought by the Illinois Attorney General. The action alleged that TBMLLC had offered an unregistered franchise in Illinois and failed to provide the required franchise disclosure document. While not admitting liability, TBMLLC agreed to the payment as part of the resolution.
In addition to the monetary penalty, TBMLLC also agreed to offer rescission of the agreement to the Illinois operator involved. However, the Illinois operator did not accept the offer of rescission, and their agreement remained in effect. The consent decree also included a permanent injunction prohibiting TBMLLC from offering or selling franchises in Illinois without proper registration and disclosure, as required by the Illinois Franchise Disclosure Act.
This situation highlights the importance of franchise registration and compliance with state franchise laws. For a prospective Basecamp Fitness franchisee, this indicates that the franchisor and its affiliates have faced legal challenges related to franchise law compliance in the past. While the issue was resolved, it underscores the need for Basecamp Fitness to maintain strict adherence to franchise regulations in all states where they operate. It would be prudent for potential franchisees to inquire about current compliance measures and any ongoing legal matters related to franchise sales.