Does the Area Development Agreement for Basecamp Fitness contain a non-compete clause?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreements | Summary | |
|---|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 17.A – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord), wherever located. | |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 17.B – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord) for 2 years in your Protected Territory or within a 10 mile radius of any Basecamp Studio. |
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 Area Development Agreement does contain non-competition covenants, both during the term of the agreement and after termination or expiration. During the term of the franchise, franchisees cannot be involved in any fitness center that offers interval training or high-intensity guided workouts, regardless of location, even as a creditor or landlord.
After the franchise is terminated or expires, the non-competition covenant extends for two years. During this period, former franchisees are prohibited from involvement in any fitness center offering interval training or high-intensity guided workouts within their Protected Territory or within a 10-mile radius of any Basecamp Fitness studio. This restriction also applies if the former franchisee acts as a creditor or landlord.
These non-compete clauses are standard in franchise agreements to protect the brand and prevent franchisees from using the franchisor's knowledge and training to compete against the system, either during the agreement or shortly thereafter. Prospective Basecamp Fitness franchisees should carefully consider the scope and duration of these restrictions, especially if they have prior experience in the fitness industry or plan to remain in the same geographic area after the franchise agreement ends.