Does the surety and guarantee for the Basecamp Fitness Franchise Agreement extend to the dispute resolution provisions outlined in the agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of the execution of the Franchise Agreement (the "Agreement") between |
|---|
| BASECAMP FITNESS FRANCHISOR LLC ("we" or "us") and |
| (the "Franchisee"), dated |
| , |
| and for other good and valuable consideration, the undersigned, for themselves, their heirs, successors, |
| and assigns, do jointly, individually and severally hereby become surety and guarantor for the payment of |
| all amounts and the performance of the covenants, terms and conditions in the Agreement, to be paid, kept |
| and performed by the Franchisee, including without limitation the dispute resolution provisions of the |
| Agreement. |
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the surety and guarantee provided for the Franchise Agreement does extend to the dispute resolution provisions within the agreement. This means that the guarantor is responsible for ensuring the franchisee fulfills their obligations related to dispute resolution, including any associated costs or required actions.
For a prospective Basecamp Fitness franchisee, this clause is significant because it clarifies that the financial and performance guarantees cover not only the general operation of the franchise but also any disputes that may arise. If a franchisee fails to comply with the dispute resolution terms, the surety can be held liable for the franchisee's non-compliance.
This provision ensures that Basecamp Fitness has recourse beyond the franchisee in enforcing the dispute resolution mechanisms outlined in the Franchise Agreement. It is a protective measure for the franchisor, ensuring that these critical processes are adhered to. Franchisees should understand that any failure to meet their obligations in dispute resolution can have consequences extending to their guarantor.