Under what condition will Basecamp Fitness reimburse a franchisee for liability arising from the use of the Marks?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness will reimburse a franchisee for liability arising from the franchisee's authorized use of the Marks. However, Basecamp Fitness offers no protection for unauthorized use of the Marks, and the franchisee will be required to reimburse Basecamp Fitness for liability arising out of any unauthorized use of the Marks.

This means that as long as a Basecamp Fitness franchisee uses the trademarks and branding elements in the way that Basecamp Fitness has approved, the franchisor will cover the franchisee's legal costs if the franchisee is sued for trademark infringement or a similar claim. This protection is a valuable benefit of franchising, as it shields franchisees from potentially significant financial losses due to lawsuits.

However, it's important to note that this protection only applies to authorized use. If a franchisee deviates from the approved marketing materials, branding guidelines, or other uses of the trademarks, Basecamp Fitness will not provide reimbursement for legal liabilities. Furthermore, the franchisee would be responsible for reimbursing Basecamp Fitness for any damages or expenses they incur due to the franchisee's unauthorized use of the Marks. Therefore, franchisees must adhere strictly to Basecamp Fitness's guidelines for using its trademarks to maintain this protection.