Can Basecamp Fitness change, dissolve, or merge any advertising cooperative at any time?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness retains the authority to modify, dissolve, or merge any advertising cooperative at any point in time. While the document states that Basecamp Fitness does not currently have advertising cooperatives, they may establish them in the future in market areas with two or more Basecamp Studios.

If a cooperative is established in a franchisee's area, the franchisee must participate and contribute, with the contribution amount determined at the time of establishment, but not exceeding 2% of monthly Gross Revenue. All franchisees and company-owned Basecamp Fitness studios in the market area will contribute at the same rate. Each contributing Basecamp Studio gets one vote on cooperative matters; however, all advertising, marketing, and promotional plans must be approved by Basecamp Fitness.

These cooperatives operate under written governing documents and prepare annual financial statements available for franchisee review. The fact that Basecamp Fitness reserves the right to change, dissolve, or merge any cooperative at any time gives them significant control over these entities, which could impact how advertising funds are spent and the overall marketing strategy in a given area. This clause gives Basecamp Fitness the power to restructure advertising efforts as they see fit, potentially without the direct consent of franchisees involved in the cooperative.