Under what conditions is a release or waiver of rights in the Basecamp Fitness franchise agreement void?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
to take place outside of Illinois.
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- Illinois law governs the Area Development Agreement.
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- Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No statement, questionnaire, or acknowledgment signed or agreed to by Franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by Franchisor, franchise seller, or other person acting on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- A Surety Bond has been obtained by the Franchisor. The Surety Bond is on file with the Office of the Illinois Attorney General. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to the Franchisor's guarantor's financial condition.
BASECAMP FITNESS FRANCHISOR LLC Its: Its:
MARYLAND ADDENDUM TO DEVELOPMENT AGREEMENT
Notwithstanding anything to the contrary set forth in the Basecamp Fitness Franchisor LLC Area Development Agreement, the following provisions shall supersede and apply to all Basecamp Fitness franchises sold to residents in the state of Maryland:
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- Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, we secured a surety bond in the amount of $291,000 from Capitol Indemnity Corporation. A copy of the bond is on file at the Maryland Office of the Attorney General, Securities Division, 200 St. Paul Place, Baltimore, Maryland 21202.
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- Sections B and C of the Recitals to the Area Development Agreement are hereby deleted in their entirety and replaced with the following:
"[Intentionally Deleted]"
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- Section 5 of the Area Development Agreement is revised to provide that termination upon bankruptcy might not be enforceable under the U.S.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the conditions under which a release or waiver of rights within the franchise agreement is void vary by state law. In Illinois, any condition, stipulation, or provision that attempts to bind someone acquiring a Basecamp Fitness franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Additionally, any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Basecamp Fitness.
For Basecamp Fitness franchises in California, California Corporations Code Section 31512 states that any condition, stipulation, or provision that binds a person acquiring a franchise to waive compliance with any provision of that law, rule, or order is void. This includes waivers of rights under the Franchise Investment Law and the Franchise Relations Act. Therefore, to the extent required by these laws, a franchisee in California cannot be required to execute a general release.
In Minnesota, Basecamp Fitness cannot require a franchisee to agree to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22. However, this does not prevent the voluntary settlement of disputes. These stipulations ensure that franchisees retain certain legal protections and rights, preventing them from being unknowingly or unwillingly relinquished through franchise agreement clauses.
For prospective Basecamp Fitness franchisees, it is crucial to understand the specific addendum for the state in which the franchise will operate. These addenda modify the standard franchise agreement to comply with local laws, particularly concerning waivers and releases. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws.