Under what circumstances does the Rhode Island Addendum apply to a Basecamp Fitness franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION]
STATE SPECIFIC ADDENDUM AS REQUIRED BY THE RHODE ISLAND FRANCHISE INVESTMENT ACT
Notwithstanding anything to the contrary in the Basecamp Fitness Franchisor LLC Franchise Disclosure Document, the following provisions shall supersede any inconsistent provisions and apply to all Basecamp Fitness franchises offered and sold in the state of Rhode Island:
This Rhode Island Addendum is only applicable if you are a resident of Rhode Island or if your business will be located in Rhode Island.
§19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the Rhode Island Addendum applies specifically to Basecamp Fitness franchises offered and sold in Rhode Island. This addendum is relevant if a prospective franchisee is a resident of Rhode Island or if the Basecamp Fitness business they plan to operate will be located within the state of Rhode Island.
The Rhode Island Addendum modifies the standard franchise agreement to comply with the Rhode Island Franchise Investment Act. One key provision of this Act, §19-28.1-14, states that any clause in a franchise agreement that restricts jurisdiction or venue to a location outside of Rhode Island, or requires the application of laws from another state, is void concerning claims enforceable under the Act. This ensures that Rhode Island franchisees have the right to resolve disputes within their own state under Rhode Island law.
In practical terms, this means that if a Basecamp Fitness franchisee meets either of the specified conditions (residency or business location in Rhode Island), the terms of the Rhode Island Addendum will take precedence over any conflicting terms in the standard franchise agreement. This is designed to protect the franchisee's rights under Rhode Island law, particularly concerning legal proceedings and the application of state laws. Prospective franchisees should carefully review the Rhode Island Addendum to understand how it modifies the standard franchise agreement and what rights it provides them within the state.