What is the condition for Basecamp Fitness to repurchase a franchisee's business?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness has the option to purchase all or a portion of the assets of a franchisee's Basecamp Studio. Additionally, Basecamp Fitness can take an assignment of the studio's leases. This option is available to Basecamp Fitness upon the termination or expiration without renewal of the Franchise Agreement.

This clause in the Franchise Agreement gives Basecamp Fitness significant control over the future of a studio location if the franchisee's agreement ends. It ensures that Basecamp Fitness can maintain its presence in a particular market by taking over the existing location rather than allowing a competitor to move in.

For a prospective franchisee, this means that the value they build in their Basecamp Fitness studio may not fully accrue to them upon exiting the business. Instead, Basecamp Fitness has the right to acquire the assets at book value, which may or may not reflect the market value or the potential of the business. Franchisees should carefully consider this clause and its potential impact on their long-term investment and exit strategy.