How is Section 18.E of the Basecamp Fitness Franchise Agreement modified regarding jurisdiction of courts?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 18.E of the Franchise Agreement is modified to delete any requirement that franchisee consent to the jurisdiction of court located outside of North Dakota.
- Sections 18.E, 18.F, 18.G and 18.H of the Franchise Agreement are revised to include the following language:
Provided, however, that all rights arising under Franchisee's favor from the provisions of Article 33 of the GBL of the State of New York 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.
- Section 18 and 20 of the Franchise Agreement is supplemented by the addition of the following:
§ 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Act."
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Section 18.E of the Franchise Agreement is modified for franchisees in North Dakota. Specifically, the modification removes any requirement that the franchisee must consent to the jurisdiction of a court located outside of North Dakota. This change is outlined in the North Dakota Addendum to the Franchise Agreement, which supersedes any conflicting provisions in the main agreement for residents or businesses located in North Dakota.
This modification is significant because it ensures that Basecamp Fitness franchisees in North Dakota will not be forced to resolve legal disputes in courts outside of their state. This can save franchisees time and money by avoiding the need to travel and hire legal representation in a different jurisdiction. It also means that disputes will be resolved under North Dakota law, which may be more familiar and favorable to the franchisee.
For franchisees in New York, Sections 18.E, 18.F, 18.G and 18.H of the Franchise Agreement are revised to include language that ensures all rights arising in the Franchisee's favor from the provisions of Article 33 of the GBL of the State of New York 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.
For franchisees in Rhode Island, Section 18 and 20 of the Franchise Agreement is supplemented by the addition of the following: "§ 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Act."