Under the Basecamp Fitness agreement, what costs are included in the indemnity that the customer agrees to?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- INDEMNITY: Customer shall and does hereby agree to indemnify, defend and hold harmless Owner and any Assignee, and each of their directors, officers, employees, agents or affiliates from any and all claims, demands, actions, suits, proceedings, costs, expenses, damages, and liabilities (including attorneys' fees) arising out of, connected with or resulting from the delivery, possession, use, operation, maintenance, repair or return of Equipment by Customer or its employees, agents, customers or vendors. Customer's obligations under the preceding sentence shall survive expiration of any rental term or the termination of the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the customer's indemnity includes a broad range of potential costs. The customer agrees to indemnify, defend, and hold harmless the Owner (likely referring to the franchisor or a related entity) and its associates from various financial burdens.
Specifically, this indemnity covers "any and all claims, demands, actions, suits, proceedings, costs, expenses, damages, and liabilities." This encompasses a wide array of legal and financial exposures, including attorney's fees, which can be substantial in legal disputes. The indemnity applies to issues "arising out of, connected with or resulting from the delivery, possession, use, operation, maintenance, repair or return of Equipment by Customer or its employees, agents, customers or vendors."
This means a Basecamp Fitness customer could be responsible for costs associated with accidents, injuries, or damages related to the equipment, regardless of who is at fault. The customer's obligations extend beyond the rental term, surviving any expiration or termination of the agreement. This places a significant financial responsibility on the customer, as they could face unexpected expenses due to the indemnity clause.