What is an exception to Basecamp Fitness's restriction on developing studios within the Development Territory?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are in compliance with the Development Schedule set forth in the Rider, then until your protected territory rights expire, we will not develop or operate or grant anyone else a franchise to develop and operate a Basecamp Studio from any location in the Development Territory, except for fitness studios within private establishments where access to these 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 do have the right to operate, or grant others the right to do so, fitness studios/businesses except under the Basecamp Fitness name within or outside your protected territory, and fitness studios/businesses operated under the Basecamp Fitness name or Marks outside your protected territory, 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. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 45–48)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, Basecamp Fitness may develop or operate studios within a franchisee's development territory under specific circumstances. Generally, if a franchisee adheres to the Development Schedule outlined in their Area Development Agreement, Basecamp Fitness will not develop, operate, or franchise another Basecamp Studio within that territory.
However, an exception exists for fitness studios located within private establishments. Basecamp Fitness reserves the right to establish or authorize the establishment of fitness studios within private businesses, such as corporate offices or hotels, where access is restricted to employees or transient guests. A key condition is that these private studio users would not have reciprocal access to other Basecamp Fitness studios through their use or membership in the private studio.
It is important to note that even with a protected territory, Basecamp Fitness retains the right to operate or franchise fitness studios or businesses under different names, both within and outside the franchisee's protected territory. Additionally, Basecamp Fitness can operate studios under the Basecamp Fitness name outside the protected territory, even if they compete with the franchisee's studio. This highlights that while franchisees receive some territorial protection, competition from the franchisor and other channels is possible.