Who pays the cost of litigation incurred by Basecamp Fitness relating to the Marks?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You will have no obligation to and will not, without our prior written consent, defend or enforce any of the Marks in any court or other proceedings for or against imitation, infringement, any claim of prior use, or for any other allegation.
You will, however, immediately notify us of any claims or complaints made against you with respect to the Marks and will, at your reasonable expense, cooperate in all respects with us in any court or other proceedings involving the Marks.
We will pay the cost and expense of all litigation incurred by us, including attorneys' fees, specifically relating to the Marks.
We will have the right to control and conduct any litigation relating to the Marks and be entitled to all recovery related to claims with respect to the Marks.
While we are not required to defend you against a claim based on your use of the Marks, we will reimburse you for your liability arising from your authorized use of the Marks.
You will also be required to reimburse us for liability arising out of your unauthorized use of any of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness will bear the costs and expenses of any litigation it incurs related to its Marks, including attorney's fees. This means that if Basecamp Fitness initiates a lawsuit to protect its trademarks, service marks, or other brand identifiers, the company is responsible for covering the legal expenses.
However, the franchisee has specific obligations regarding the Marks. The franchisee cannot, without Basecamp Fitness's written consent, defend or enforce the Marks in any legal proceedings. The franchisee must immediately inform Basecamp Fitness of any claims or complaints against them concerning the Marks and must cooperate with Basecamp Fitness in any related legal proceedings, at the franchisee's reasonable expense.
Basecamp Fitness retains the right to control and conduct any litigation pertaining to the Marks and is entitled to all monetary recovery from claims related to the Marks. While Basecamp Fitness is not obligated to defend the franchisee in claims arising from the franchisee's use of the Marks, Basecamp Fitness will reimburse the franchisee for liability resulting from the franchisee's authorized use of the Marks. Conversely, the franchisee is required to reimburse Basecamp Fitness for liability stemming from the franchisee's unauthorized use of the Marks. This allocation of responsibility ensures Basecamp Fitness maintains control over its brand and legal strategy while protecting franchisees acting within the scope of their authorized use of the Marks.