Does Basecamp Fitness have an obligation to obtain insurance for the franchisee if the franchisee fails to do so?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not obtain or maintain insurance coverage that meets our requirements and we obtain it for you, you must pay us our then current insurance handling fee plus the cost of the premiums we pay for the insurance.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are required to maintain insurance coverage that meets the franchisor's requirements. If a franchisee fails to obtain or maintain the necessary insurance, Basecamp Fitness has the option to obtain the insurance coverage on behalf of the franchisee.
If Basecamp Fitness obtains insurance for the franchisee, the franchisee is obligated to pay Basecamp Fitness a handling fee, as well as the cost of the insurance premiums. The FDD specifies that the handling fee will be the then-current fee at the time the insurance is obtained.
This arrangement ensures that all Basecamp Fitness studios maintain the required insurance coverage, protecting both the franchisee and franchisor from potential liabilities. However, it places the onus on the franchisee to ensure they maintain adequate and timely insurance coverage to avoid additional fees and potential intervention by Basecamp Fitness.