When is a waiver of exemplary or punitive damages valid for a Basecamp Fitness franchise?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the enforceability of a waiver regarding punitive damages within the franchise agreement is subject to state-specific laws. For instance, the California Addendum to the Franchise Agreement indicates that the waiver of punitive damages and jury trial provisions included in the standard agreement may not be enforceable under California law. This suggests that the validity of such waivers is not absolute and depends on the legal jurisdiction governing the franchise agreement.

Furthermore, the FDD includes addenda for Illinois and North Dakota, but these do not specifically address the waiver of punitive damages. The North Dakota addendum does modify sections of the franchise agreement related to enforcement actions and termination penalties, but it does not mention punitive damages. Similarly, the Illinois addendum does not contain information about the waiver of punitive damages.

Therefore, a prospective Basecamp Fitness franchisee should be aware that the enforceability of a punitive damages waiver can vary. If operating in California, the waiver might not be upheld, giving the franchisee potential recourse to seek such damages in certain disputes. Franchisees should consult with legal counsel to understand the specific implications of these waivers in their state and how local laws may affect their rights under the franchise agreement.