How does Basecamp Fitness determine the boundaries of a franchisee's protected territory?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e can terminate your ADA and/or Franchise Agreement(s) in their entirety and you are not entitled to a refund of any of the Development Fees or Initial Franchise Fees paid.
Protected Territory
To identify your protected territory we will use mapping and demographic software to draw a circle around your location. The determination of your protected territory is within our sole discretion. Although the description of the boundaries outlining the protected territory may vary, the territory will not be larger than an area surrounding your Basecamp Studio that has no more than 50,000 people, based on census projections for up to five years from the date of your Franchise Agreement.
We may attach a map to your Franchise Agreement that will identify the protected territory or we may simply describe an area surrounding your location. The map or description may not be a specific radius from your Basecamp Studio, because it will take into account traffic patterns and natural boundaries. Protected territories may overlap, but we will not approve anyone opening a Basecamp studio, or relocating a Basecamp Fitness studio, into a protected territory given to another studio. We cannot unilaterally change your protected territory, and there are no minimum quotas, sales volumes, market penetration, or other contingency required to maintain your protected territory; as long as your Franchise Agreement is in effect, you will retain the rights described in this paragraph. If we and you agree to renew your Basecamp franchise, we will recalculate the population in your market and reserve the right to modify your protected territory in accordance with our then current guidelines. Except as provided above, your protected territory will not change even if the population within your protected territory changes.
The criteria we use for determining the boundaries of the protected territory in your Franchise Agreement include population as discussed above, growth trends of population, apparent degree of affluence of population, the density of residential and business entities, traffic generators, driving time, and natural boundaries. During the term of your Franchise Agreement, we will not operate or license to anyone else the right to operate a Basecamp Fitness studio that is physically located in your protected territory, except for fitness studios within private establishments where access to those studios is limited to employees of the business, or transient guests of the business who, in either case, would not have reciprocity with any other Basecamp Studio as a result of their use or membership in this private studio. However, we and our affiliates can operate fitness studios/businesses, or grant others the right to do so, outside your protected territory, including studios operated under the Basecamp Fitness name or Marks, even if they compete for
members with your studio, and even if the territorial boundaries for that franchise overlap with the boundaries for your territory.
Source: Item 12 — TERRITORY (FDD pages 45–48)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, the determination of a franchisee's protected territory is at the sole discretion of Basecamp Fitness. To identify a protected territory, Basecamp Fitness uses mapping and demographic software to draw a circle around a studio's location. While the description of the boundaries may vary, the protected territory will not be larger than an area surrounding the Basecamp Studio with no more than 50,000 people, based on census projections for up to five years from the date of the Franchise Agreement.
Basecamp Fitness may attach a map to the Franchise Agreement that identifies the protected territory, or they may simply describe an area surrounding the location. The map or description may not be a specific radius from the Basecamp Studio, because it will take into account traffic patterns and natural boundaries. The criteria Basecamp Fitness uses for determining the boundaries of the protected territory in the Franchise Agreement include population, growth trends of population, apparent degree of affluence of population, the density of residential and business entities, traffic generators, driving time, and natural boundaries.
It is important to note that Basecamp Fitness franchisees do not receive an exclusive territory. Franchisees may face competition from other franchisees, outlets that Basecamp Fitness owns, or from other channels of distribution or competitive brands that Basecamp Fitness controls. Protected territories may overlap, but Basecamp Fitness will not approve anyone opening a Basecamp studio, or relocating a Basecamp Fitness studio, into a protected territory given to another studio. However, Basecamp Fitness and its affiliates can operate fitness studios/businesses, or grant others the right to do so, outside a franchisee's protected territory, including studios operated under the Basecamp Fitness name or Marks, even if they compete for members with the franchisee's studio, and even if the territorial boundaries for that franchise overlap with the boundaries for the franchisee's territory.
Basecamp Fitness and its affiliates also have the right to operate, and to grant franchises or licenses to others to operate, any fitness studio/business and any other business from locations within the territory under trademarks other than "Basecamp Fitness", without compensation to the franchisee. If Basecamp Fitness and a franchisee agree to renew the franchise, Basecamp Fitness will recalculate the population in the market and reserves the right to modify the protected territory in accordance with its then current guidelines. Except as provided above, the protected territory will not change even if the population within the protected territory changes.