What specific Act governs the Basecamp Fitness agreement regarding trademarks?

According to the 2025 Basecamp Fitness Franchise Disclosure Document, the franchise agreement specifies that continued use of Basecamp Fitness's trademarks after the agreement's expiration or termination will be considered an "exceptional case" under federal trademark law, specifically 15 U.S.C. § 1117. This statute allows Basecamp Fitness to potentially recover treble damages, costs, and attorneys' fees from the franchisee if unauthorized use of the trademarks occurs after the franchise agreement ends.

This clause is significant for prospective franchisees because it highlights the importance of adhering to the terms of the franchise agreement regarding trademark usage. Once the agreement expires or is terminated, the franchisee must immediately cease all use of the Basecamp Fitness marks. Failure to do so could result in substantial financial penalties due to the "exceptional case" provision under federal law.

It is common practice in franchising to strictly control the use of trademarks to protect brand integrity and goodwill. This clause reinforces Basecamp Fitness's commitment to protecting its intellectual property and ensures that franchisees understand the legal ramifications of unauthorized trademark use. Franchisees should carefully review the terms of the franchise agreement and seek legal counsel to fully understand their obligations regarding trademark usage both during and after the franchise term.