Under what circumstances can a Basecamp Fitness franchisee seek treble damages in Washington?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Subject to Section 16.H below, you will take such actions as may be necessary to cancel any assumed name or similar registration that contains the Marks "Basecamp" or "Basecamp Fitness" or any other Mark, and will immediately and permanently refrain from and cease all use of the Marks on or in any Technology Platforms and cancel any Technology Platform you control as we direct. You agree and acknowledge that your continued use of the Marks after the expiration or termination of this Agreement will be without our consent and will constitute an "exceptional case" under federal trademark law (15 U.S.C. § 1117) entitling us to recover treble damages, costs and attorneys' fees.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee's ability to seek treble damages in Washington is tied to specific circumstances related to the termination of the franchise agreement and the continued use of Basecamp Fitness's trademarks.
Specifically, if a franchisee continues to use Basecamp Fitness's trademarks after the termination or expiration of the franchise agreement without the company's consent, this is considered an "exceptional case" under federal trademark law. This situation allows Basecamp Fitness to pursue treble damages, costs, and attorneys' fees from the franchisee. The FDD highlights the importance of ceasing all use of confidential information, the approved Information System, related software, methods, procedures, techniques, marks, and distinctive forms associated with the Basecamp Fitness system upon termination or expiration of the agreement.
This provision underscores the importance of adhering to the terms of the franchise agreement, particularly those concerning the use of intellectual property. Franchisees should be aware that unauthorized use of trademarks post-termination can lead to significant financial penalties. It is a common practice in franchising to protect brand integrity through such measures, ensuring that terminated franchisees do not unfairly benefit from the brand's reputation and goodwill. Franchisees in Washington should pay close attention to these clauses and seek legal counsel to fully understand their obligations upon termination or expiration of their franchise agreement.