What compliance status must a Basecamp Fitness franchisee have to be eligible for a transfer?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement, and your rights and obligations under it, are and will remain personal to you.
As used in this Agreement, the term "Transfer" will mean any sale, lease, assignment, gift, pledge, mortgage or any other encumbrance, transfer by bankruptcy, transfer by your disability or death or by judicial order, merger, consolidation, share exchange, transfer by operation of law or otherwise, whether direct or indirect, voluntary or involuntary, of this Agreement or any interest in it, or any rights or obligations arising under it, or of any material portion of your assets used to operate your Basecamp Studio, or of any interest in you, or if you are a corporation, partnership, limited liability company or other entity, a transfer, pledge, assignment, or other disposition of direct or indirect control or ownership of fifty percent (50%) or more of any interest in your entity.
In addition, if there are two (2) individuals signing this Agreement as Franchisee, and one (1) of those individuals is no longer involved in the ownership of your Basecamp Studio, the withdrawal of that person will be considered a "Transfer." A "Transfer" will also be deemed to occur when there are more than two (2) people listed as the Franchisee and there is a change in the ownership of your Basecamp Studio such that less than a majority of the original signators continue to have a majority interest in the equity of the business.
You (and your shareholders, partners and members) will not directly or indirectly make a Transfer without our prior written consent and any transfer shall be subject to our right of first refusal, as set forth in Section 19 below.
Unless otherwise provided in this Agreement, we will not unreasonably withhold, delay or condition our consent to a Transfer, subject to all of the following conditions being satisfied:
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- you are in full compliance with this Agreement, you have no uncured defaults, and all your debts and financial obligations to us and our affiliates are current;
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- you provide us with all information we may require concerning the proposed transaction (including a copy of the purchase agreement and all related documents), and the proposed transferee;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee must be in full compliance with the Franchise Agreement to be eligible for a transfer. This means the franchisee must have no uncured defaults and all debts and financial obligations to Basecamp Fitness and its affiliates must be current.
This requirement ensures that franchisees are meeting their contractual obligations before transferring ownership. It protects Basecamp Fitness by ensuring that the new franchisee takes over a business that is in good standing.
For a prospective Basecamp Fitness franchisee, this highlights the importance of maintaining compliance with the franchise agreement. Failure to do so can prevent the sale of the franchise. This condition is typical in franchising, as franchisors want to ensure a smooth transition and maintain brand standards.