Does the Basecamp Fitness owner have liability with respect to the installation of the equipment for a Basecamp Fitness franchise?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are responsible for freight and installation costs associated with equipment. Specifically, revenue is recognized upon delivery and assembly or installation of the equipment at the studio location. Franchisees are charged for all freight and installation costs, and this revenue is recorded as sales, while the associated costs are recorded as cost of goods sold. This indicates that the franchisee bears the financial responsibility for these aspects of setting up their Basecamp Fitness studio.

This arrangement is fairly standard in the franchise industry, where franchisees typically cover the costs of setting up their location, including equipment installation. By making the franchisee responsible for these costs, Basecamp Fitness ensures that the franchisee has a vested interest in the proper setup and maintenance of their studio. It also allows Basecamp Fitness to streamline its operations by not directly managing the installation process for each franchise location.

However, the FDD does not explicitly state who bears the liability if something goes wrong during the installation process. While the franchisee pays for the installation, it is not clear whether they are also liable for any damages or injuries that may occur during the installation. A prospective franchisee should seek clarification from Basecamp Fitness regarding liability for installation-related issues to fully understand their responsibilities and potential risks.