What is the dependency between transferring all Basecamp Fitness studio agreements and paying a transfer fee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
erally guaranteeing the full payment and performance of the transferee's obligations to us and agreeing to be personally bound by all covenants and restrictions imposed upon the transferee under the terms of this Agreement; and
- Contemporaneous with the Transfer hereunder you shall have transferred to the transferee all of the Franchise Agreements under which you or any affiliate are operating Basecamp Fitness studios, and you must comply with all of the conditions for transferring each of those agreements, including the requirement to pay a transfer fee in connection with the transfer of each of those agreements.
- D. You consent to us releasing to any proposed transferee any information we may have concerning the development business or any Basecamp Fitness studio.
- E.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee's obligation to pay a transfer fee is contingent on whether they are transferring all of their Basecamp Fitness studio agreements. Specifically, if a franchisee is transferring all of their franchise agreements for existing Basecamp Fitness studios, they are required to pay a transfer fee for each agreement being transferred.
However, there's an exception: if the franchisee is transferring their development rights but hasn't yet opened any Basecamp Fitness studios (meaning they don't have any franchise agreements to transfer), they will be required to pay a $7,500 transfer fee at the time of their transfer approval request. This fee appears to be associated with the transfer of the development agreement itself, rather than individual studio franchise agreements.
In summary, the transfer of all Basecamp Fitness studio agreements necessitates the payment of a transfer fee for each agreement. Conversely, if no studios have been opened, a single transfer fee of $7,500 applies to the transfer of the development rights. This distinction is important for prospective franchisees to understand, as it affects the costs associated with transferring their business rights under different circumstances.