What is the name of the Illinois case involving affiliates of Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Director for BFLLC from September 2019 to November 2021.
ITEM 3 LITIGATION
There is no litigation required to be disclosed in the Item regarding the Basecamp Fitness brand.
The following disclosures relate to our affiliates, TBM and TBMLLC, in connection with the offering of boutique fitness 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 the 2025 Basecamp Fitness Franchise Disclosure Document, there is no litigation required to be disclosed regarding the Basecamp Fitness brand itself. However, the FDD does disclose litigation related to Basecamp Fitness's affiliates, TBM and TBMLLC, which are connected to the offering of boutique fitness studios under The Bar Method® name.
The Illinois case involving these affiliates is titled "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 initiated this action, alleging that an agreement between TBM and an Illinois resident, later assigned to TBMLLC, constituted an unregistered franchise under the Illinois Franchise Disclosure Act, and that a franchise disclosure document was not provided as required.
In this case, the defendants agreed to a Final Judgment and Consent Decree without admitting liability. They were permanently prohibited from offering or selling franchises in Illinois without proper registration and disclosure. TBMLLC also offered rescission of the agreement to the Illinois operator and agreed to pay $5,000 in penalties and costs to the State of Illinois. The Illinois operator, however, did not accept the rescission offer, and their agreement remained in effect. This type of disclosure is standard in franchise agreements, as it allows potential franchisees to assess the legal history of the franchisor and its affiliates.