Does the Basecamp Fitness Personal Guaranty extend to the dispute resolution provisions outlined in the Franchise Agreement?

Based on the 2025 Basecamp Fitness Franchise Disclosure Document, the information provided does not explicitly state whether the Personal Guaranty extends to the dispute resolution provisions outlined in the Franchise Agreement. However, the FDD does mention the Guaranty Agreement and its requirements. Specifically, any person or entity that becomes an owner after the agreement's effective date must sign the Guaranty Agreement as a condition of ownership. In addition, Basecamp Fitness may require a spouse of an owner or any other designated person to sign the Guaranty Agreement.

Item 22 of the FDD discusses contracts and addenda related to the franchise agreement. It also includes addenda for franchisees in California, Illinois, Indiana, Maryland, and New York, which modify certain provisions of the standard franchise agreement. For example, the California Addendum addresses issues such as franchise termination, non-renewal rights, waivers, and the applicability of California law. The Indiana Addendum modifies the post-termination non-compete clause, while the Maryland Addendum discusses financial assurances and revisions to recitals in the agreement. The New York Addendum revises a section related to manual revisions.

Item 22 also mentions that the Franchise Agreement requires binding arbitration, which will occur at the American Arbitration Association office in Minneapolis, Minnesota. The franchisee will bear all arbitration costs if Basecamp Fitness secures relief against them or successfully defends a claim brought by the franchisee. Given the lack of explicit information about the Personal Guaranty's extension to dispute resolution, prospective franchisees should seek clarification from Basecamp Fitness regarding the scope and implications of the Guaranty Agreement, particularly in relation to dispute resolution and arbitration costs.