Who, besides the franchisee, must sign confidentiality and non-compete agreements for a Basecamp Fitness franchise, if requested by the franchisor?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You will disclose such confidential information only to such of your employees as must have access to it in order to operate your Basecamp Studio and use it only for the operation of your Basecamp Studio. At our request, you must deliver to us confidentiality agreements and non-compete agreements in a form satisfactory to us signed by your owners and the spouses of your owners. All of your managers must sign confidentiality agreements. The scope of the confidentiality agreements shall be consistent with the provisions of this Section 10.A, and the scope of the noncompete agreements shall be consistent with the provisions of Section 17 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, in addition to the franchisee, certain other parties may be required to sign confidentiality and non-compete agreements. Specifically, if requested by Basecamp Fitness, the owners and the spouses of the owners must deliver signed confidentiality and non-compete agreements in a form satisfactory to Basecamp Fitness. All of the franchisee's managers must also sign confidentiality agreements.
The confidentiality agreements must align with the confidentiality provisions outlined in Section 10.A of the franchise agreement. Similarly, the non-compete agreements must be consistent with the provisions of Section 17 of the agreement. This ensures that sensitive business information and competitive practices are protected according to the standards set by Basecamp Fitness.
For a prospective Basecamp Fitness franchisee, this requirement means that not only will they be bound by confidentiality and non-compete obligations, but so too will their owners, their spouses, and all managers. This is a fairly standard practice in franchising, as franchisors seek to protect their trade secrets and business methods from being used to benefit competitors. Franchisees should carefully review Sections 10.A and 17 of the franchise agreement to fully understand the scope and limitations of these agreements before signing.