According to the Basecamp Fitness Development Agreement, what is the definition of an 'affiliate'?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be deemed in default under this Agreement if you breach any of the terms of this Agreement or if you or any affiliate of yours breaches any of the terms of any Franchise Agreement or any other agreement that you or your affiliates have with us or our affiliates. For purposes of this Agreement, an "affiliate" of any person will be any person or entity that controls that person, is under the control of that person, or is under common control with that person.
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 Development Agreement defines an 'affiliate' as any person or entity that controls another person, is under the control of that person, or is under common control with that person. This definition is important because a breach of any agreement with Basecamp Fitness or its affiliates by the franchisee or their affiliates can result in a default under the Development Agreement.
This broad definition means that Basecamp Fitness considers not only the direct actions of the franchisee but also the actions of any entity or person closely related to or controlled by them. This could include parent companies, subsidiaries, or even individuals with significant influence over the franchisee's business decisions.
For a prospective Basecamp Fitness franchisee, this highlights the importance of ensuring that all related business entities and individuals are aware of and compliant with the terms of the Development Agreement and Franchise Agreement. Any misstep by an affiliate could have serious consequences for the franchisee's development rights and franchise operations.