What pre-opening obligations of Basecamp Fitness to Washington franchisees are secured by the surety bond?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
BASECAMP FITNESS FRANCHISOR LLC Its: Its:
WASHINGTON ADDENDUM TO THE DEVELOPMENT AGREEMENT AND RELATED AGREEMENTS
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
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- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise.
There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
The 2025 Basecamp Fitness FDD does not specify which pre-opening obligations to Washington franchisees are secured by a surety bond. While the document mentions that Basecamp Fitness's Franchise Disclosure Document is registered in Washington, it does not elaborate on the details of any surety bond related to pre-opening obligations in that state.
However, the FDD does mention surety bonds in the context of other states like Maryland and Illinois. For Maryland, a surety bond of $291,000 was secured due to the franchisor's financial condition, as required by the Maryland Securities Commissioner. In Illinois, a surety bond was obtained due to the franchisor's guarantor's financial condition, as mandated by the Office of the Illinois Attorney General.
To fully understand the pre-opening financial protections available to Washington franchisees, it is essential to directly ask Basecamp Fitness about the existence, amount, and coverage of any surety bond or other financial assurances in place to protect franchisees in Washington. Prospective franchisees should request specific details on which obligations are secured and how to make a claim against the bond if necessary.