What is the exception to Basecamp Fitness's restriction on operating or licensing studios within a franchisee's protected territory?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 45–48)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, Basecamp Fitness will not operate or license another Basecamp Fitness studio within a franchisee's protected territory during the term of the Franchise Agreement. However, there is an exception to this restriction.
The exception applies to fitness studios within private establishments. Specifically, Basecamp Fitness can operate or license studios within private establishments where access is limited to employees or transient guests of the business. These employees or guests would not have reciprocity with any other Basecamp Fitness studio as a result of their use or membership in the private studio.
This exception means that a Basecamp Fitness franchisee's protected territory is not absolute. While Basecamp Fitness will not authorize competing franchises accessible to the general public within that territory, they can establish studios in locations like corporate gyms or hotels, even if those locations fall within the franchisee's protected area. This could potentially draw customers away from the franchisee's studio, although the impact may be limited due to the restricted access to the private studio.