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

According to Basecamp Fitness's 2025 Franchise Disclosure Document, while Basecamp Fitness is not required to defend a franchisee against claims arising from the use of its marks, it may choose to do so. Alternatively, Basecamp Fitness may reimburse the franchisee for their liability in such cases. This reimbursement is contingent upon the franchisee's proper use of the marks, including defense against claims of infringement or unfair competition related to the use of the marks.

This means that if a franchisee is sued for trademark infringement or unfair competition due to their use of the Basecamp Fitness marks, the franchisor has the option to either defend the franchisee in court or reimburse them for any resulting liability. However, this support is conditional. The franchisee must be using the marks correctly and in accordance with the franchise agreement and operations manual.

It is important for prospective Basecamp Fitness franchisees to understand the specific guidelines for using the trademarks and service marks, as outlined in the franchise agreement and operations manual. Failure to adhere to these guidelines could jeopardize the franchisee's eligibility for defense or reimbursement in the event of a legal claim. Franchisees should also promptly notify Basecamp Fitness of any potential infringement or challenges to the use of the marks to ensure they can take appropriate action.

While Basecamp Fitness states they will protect their marks, they are not required to take any specific affirmative action. This means the franchisee should not assume Basecamp Fitness will proactively pursue infringers. The franchisee has a responsibility to report any potential misuse of the marks to Basecamp Fitness.