What requirement regarding termination penalties or liquidated damages has been removed from Section 6.B of the Area Development Agreement for Basecamp Fitness franchisees?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Section 687.4 and 687.5 be satisfied.
Franchisor: BASECAMP FITNESS FRANCHISOR LLC Its: Its:
NORTH DAKOTA ADDENDUM TO DEVELOPMENT AGREEMENT
Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Area Development Agreement, the following provisions shall supersede any inconsistent provisions and apply to all Basecamp Fitness franchises offered and sold in the state of North Dakota:
This North Dakota Addendum is only applicable if you are a resident of North Dakota or if your business will be located in North D
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, a specific modification is made to Section 6.B of the Area Development Agreement for franchisees in North Dakota. This modification removes any requirement for the franchisee to consent to termination penalties or liquidated damages. This change is outlined in the North Dakota Addendum to the Development Agreement, which supersedes any conflicting provisions in the standard Area Development Agreement, but only if the franchisee is a resident of North Dakota or their business will be located there.
This means that for Basecamp Fitness franchisees in North Dakota, the franchisor cannot enforce termination penalties or liquidated damages if the franchisee has not explicitly consented to them. This provides an added layer of protection for franchisees in North Dakota, as it prevents the franchisor from imposing such penalties without the franchisee's agreement. This modification ensures that franchisees are not subject to potentially burdensome financial repercussions upon termination without having given their explicit consent.
It is important to note that this modification applies specifically to North Dakota franchisees. Franchisees in other states are subject to the standard terms of the Area Development Agreement regarding termination penalties and liquidated damages. Prospective franchisees should carefully review the Area Development Agreement and any state-specific addenda to understand their rights and obligations regarding termination penalties and liquidated damages.