What specific claims are excluded from the general release provided by a Basecamp Fitness franchisee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of the agreement of BASECAMP FITNESS FRANCHISOR LLC ("Franchisor") to allow ("Franchisee") to [RENEW OR TRANSFER] its Franchise Agreement dated between Franchisee and Franchisor ("Agreement"), Franchisee hereby releases and forever discharges Franchisor, and its affiliates, as well as their current or former members, directors, officers, employees and agents, in their corporate and individual capacities, and their respective heirs, personal representatives, successors and assigns, from any and all claims Franchisee may have against such parties known and unknown, foreseen and unforeseen, from the beginning of time to the date hereof, whether in law or in equity, including, but not limited to, any claims arising out of the offer or sale of any franchise to Franchisee, and any matters arising under the Agreement or under any other agreement between Franchisee and Franchisor or its affiliates. |
|---|
| The general release does not apply with respect to claims arising under the Washington Franchise Investment |
| Protection Act, RCW 19.100, and the rules adopted thereunder. |
| [FOR TRANSFERS: Further, Franchisee acknowledges that transfer of the Agreement shall terminate Franchisee's |
| interest in the Agreement, but Franchisee will continue to be bound by all post-termination provisions of the |
| Agreement, including but not limited to the obligations of confidentiality, and the covenant not to compete |
| contained in the Agreement.] |
| [IN CALIFORNIA: The foregoing release is intended as a general release of |
| all claims, demands, actions, causes |
| of action, obligations, damages and liabilities of any kind or nature whatsoever that relate to the matters recited |
| therein, and is intended to encompass all known and unknown, foreseen and unforeseen claims which the releasing |
| party may have against any party being released. Section 1542 of the California Civil Code provides: |
| A general release does not extend to claims that the creditor or releasing party does not know or |
| suspect to exist in his or her favor at the time of executing the release and that, if known by him |
| or her, would have materially affected his or her settlement with the debtor or released party. |
| You expressly waive the provisions of Section 1542 of the California Civil Code and expressly release each party |
| to be released from all liability or claims arising out of any matters recited in the release.] |
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the general release that a franchisee signs when renewing or transferring their franchise agreement does not apply to certain claims, depending on the state. Specifically, for franchisees, the general release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules.
For franchisees in California, the release is intended to cover all known and unknown claims related to the recited matters. However, California Civil Code Section 1542 provides an exception: a general release does not extend to claims that the releasing party doesn't know or suspect to exist at the time of signing, and that, if known, would have materially affected their settlement. The Basecamp Fitness franchise agreement requires franchisees to expressly waive this provision, meaning they release the company from liability even for unknown claims.
In Minnesota, Basecamp Fitness cannot require a franchisee to agree to a release that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22. However, this does not prevent the voluntary settlement of disputes. These stipulations ensure that franchisees retain certain rights and protections under state laws, despite signing a general release.