What constitutes a valid modification of the Basecamp Fitness franchise agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you sign the standard Franchise Agreement then being used by us within thirty(30) days of receipt, provided that you pay the Renewal Fee in lieu of the Initial Franchise Fee set forth in the then-current Franchise Agreement. The terms of such Franchise Agreement may differ from this Agreement, including higher fees and a modification to the Protected Territory based upon our thencurrent methods of determining protected territories (and which may include a reduction in the size of the Protected Territory);
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- you present satisfactory evidence that you have the right to remain in possession of the Franchised Location for the duration of the renewal term, unless we determine that the location of your business is no longer viable for the operation of your Basecamp Studio, in which case we may condition your right to renew on your obtaining a new site for your Basecamp Studio that we approve;
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- your management staff successfully completes any refresher training prescribed by us at least thirty (30) days prior to the expiration of the term of this Agreement; and
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- at the time you sign the Franchise Agreement to renew your franchise, you sign and deliver to us a general release, in the form we prescribe, releasing, to the fullest extent permitted under the laws of the state where your Basecamp Studio is located, all claims that you may have against us and our affiliates and our respective current and former officers, directors, shareholders, employees, insurers, consultants, contractors and agents, in both their corporate and individual capacities.
If you fail to timely comply with any provision of this Section 2.B, time being of the essence, we will at all times thereafter be permitted to operate or license to someone else the right to operate a Basecamp Fitness studio from any location in the Protected Territory, and you specifically grant to us and to the owner of that studio the right to contact the members and any other customers of your Basecamp Studio, notify them that you have chosen not to renew your relationship with us, and solicit those members and customers to patronize a new Basecamp Fitness studio in the Protected Territory.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, modifications to the franchise agreement are valid under specific conditions, particularly during renewal. A franchisee must sign the standard Franchise Agreement then in use by Basecamp Fitness within thirty days of receipt, and pay a Renewal Fee of $5,000 in lieu of the Initial Franchise Fee. The terms of the renewed Franchise Agreement may differ from the original, potentially including higher fees and modifications to the Protected Territory, which may even result in a reduction in size.
To ensure a valid renewal with modifications, the franchisee must also present satisfactory evidence of their right to remain in possession of the Franchised Location for the duration of the renewal term. However, Basecamp Fitness retains the right to determine if the location is still viable for operation. If the location is deemed unsuitable, the renewal may be conditional upon the franchisee securing a new, approved site for the Basecamp Studio. Additionally, the franchisee's management staff must successfully complete any refresher training prescribed by Basecamp Fitness at least thirty days before the expiration of the original agreement term.
Finally, at the time of signing the renewal Franchise Agreement, the franchisee must sign and deliver a general release, in a form prescribed by Basecamp Fitness. This release must waive, to the fullest extent permitted by local laws, all claims against Basecamp Fitness, its affiliates, and their respective current and former officers, directors, shareholders, employees, insurers, consultants, contractors, and agents. Failure to comply with these provisions in a timely manner allows Basecamp Fitness to operate or license another studio in the Protected Territory and solicit the existing studio's members and customers.