What are the specific obligations of a Basecamp Fitness franchisee regarding insurance coverage, as detailed in Item 9, and how do these obligations relate to the franchisor's requirements for insurance providers (Item 8)?

Based on the 2025 Franchise Disclosure Document, Basecamp Fitness franchisees are obligated to maintain insurance coverage that meets the franchisor's requirements. If a franchisee fails to obtain or maintain the required insurance, Basecamp Fitness has the right to obtain the insurance coverage on behalf of the franchisee. In such cases, the franchisee is responsible for paying Basecamp Fitness' then-current insurance handling fee, in addition to the cost of the insurance premiums. This ensures that all Basecamp Fitness studios maintain adequate insurance coverage, protecting both the franchisee and franchisor from potential liabilities.

Item 8 specifies that all insurance franchisees purchase for use in their Basecamp Studio must meet Basecamp Fitness' specifications. While the FDD does not explicitly state that Basecamp Fitness designates specific insurance providers, it does state that all insurance must meet their standards.

This requirement allows Basecamp Fitness to ensure brand consistency and quality control across all franchise locations. While franchisees may have some flexibility in choosing insurance providers, they must adhere to the standards set by Basecamp Fitness. Prospective franchisees should inquire about the specific insurance requirements and whether Basecamp Fitness has preferred vendors to ensure compliance and potentially benefit from negotiated rates.