Is Basecamp Fitness allowed to operate other businesses under different trademarks within or outside the Development Territory?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that (i) we and our affiliates have the right to grant other franchises or operate company or affiliate owned fitness studios/businesses (including Basecamp Studios) at locations outside the Development Territory even if they compete with your Basecamp Studios for customers or members; (ii) we and our affiliates have the right to grant other franchises or licenses and to operate company or affiliate-owned fitness studios/businesses (including Basecamp Studios) within private establishments located within the Development Territory, provided that access to those centers is limited to employees of the business, or transient guests of the business, in either case who would not have any reciprocity with any other Basecamp Studio as a result of their use or membership in this private studio; and (iii) we and our affiliates have the right to operate, and to grant franchises or licenses to others to operate fitness studios/businesses, or any other business within and outside the Development Territory under trademarks other than the Marks, all without compensation to you.
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, Basecamp Fitness and its affiliates retain the right to operate other businesses under different trademarks both within and outside a franchisee's Development Territory without providing any compensation to the franchisee. This means that a Basecamp Fitness franchisee's territory is not protected from competition from other businesses owned or franchised by Basecamp Fitness that operate under different brand names.
This clause has significant implications for prospective franchisees. While franchisees are granted a Development Territory, this territory does not prevent Basecamp Fitness from engaging in other business ventures, even if those ventures directly compete with the franchisee's Basecamp Fitness studio. The franchisee should be aware that Basecamp Fitness could operate or franchise other fitness concepts nearby, potentially drawing customers away from the franchisee's location.
This is a fairly common practice in franchising, as franchisors often seek to diversify their revenue streams and explore different market segments. However, it is crucial for a prospective Basecamp Fitness franchisee to fully understand the scope of the Development Territory and the potential for competition from the franchisor's other ventures. Franchisees should carefully evaluate the market and competitive landscape before investing in a Basecamp Fitness franchise, considering that Basecamp Fitness has the right to operate similar businesses under different trademarks in the same area.