For Basecamp Fitness, what is the duration of the non-compete period after the transfer, expiration, or termination of the Franchise Agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not, directly or indirectly for a period of two (2) years after the transfer by you, or the expiration or termination of this Agreement, on your own account or as an employee, consultant, partner, officer, director, shareholder, lender, or joint venturer of any other person, firm, entity, partnership, corporation or company, own, operate, lease to or lease from, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in offering interval training classes or high-intensity guided workouts, within the Protected Territory or within a ten (10) mile radius of any Basecamp Fitness studio, wherever located, whether within the Protected Territory or elsewhere.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are subject to a non-compete agreement for two years after the transfer, expiration, or termination of their Franchise Agreement. During this period, the franchisee is prohibited from engaging in or being associated with any business offering interval training classes or high-intensity guided workouts. This restriction applies within the franchisee's Protected Territory and extends to a ten-mile radius of any Basecamp Fitness studio, regardless of location.
This non-compete clause prevents former franchisees from leveraging the knowledge, training, and confidential information gained during their time with Basecamp Fitness to directly compete with the brand. The geographical restriction ensures that former franchisees cannot establish a competing business that would draw customers away from existing Basecamp Fitness studios, thereby protecting the brand's market share and the investments of other franchisees.
However, the FDD includes addenda for specific states that may modify or supersede the standard non-compete terms. For example, the Indiana Addendum removes the ten-mile radius restriction, limiting the non-compete to only the Protected Territory. In contrast, the North Dakota Addendum states that covenants not to compete are generally considered unenforceable in the state. The California Addendum indicates that the covenant not to compete which extends beyond the termination of the franchise may not be enforceable under California law. Therefore, the enforceability and specific terms of the non-compete agreement can vary significantly depending on the franchisee's location.
Prospective franchisees should carefully review the addendum applicable to their state to understand the specific restrictions and limitations on their ability to engage in similar businesses after leaving the Basecamp Fitness system. It is also advisable to seek legal counsel to fully understand the implications of the non-compete agreement in their specific jurisdiction.