After the expiration or termination of a Basecamp Fitness franchise, what specific activities are franchisees prohibited from engaging in within the Protected Territory for two years?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
rm, entity, partnership, corporation or company, own, operate, lease to or lease from, franchise, engage in, be connected with, have any interest in, or assist any person or entity engaged in owning, operating, or managing any business that offers interval training classes or high-intensity guided workouts, wherever located, whether within the Protected Territory or elsewhere.
- B. After Expiration, Termination, or Transfer. 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.
- C. Reasonableness.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, for a period of two years after the franchise agreement's expiration, termination, or transfer, former franchisees are restricted from involvement in businesses offering interval training classes or high-intensity guided workouts. This restriction applies within the Protected Territory and extends to a ten-mile radius of any Basecamp Fitness studio, regardless of location.
The prohibited activities are broad, encompassing various roles such as owner, operator, lessor, lessee, franchisor, conductor, or being connected with any entity engaged in these activities. This includes acting as an employee, consultant, partner, officer, director, shareholder, lender, or joint venturer. The restrictions aim to prevent former franchisees from leveraging Basecamp Fitness's confidential information, training, and market presence to compete against the franchise system.
Basecamp Fitness deems these prohibitions reasonable and necessary to protect the brand and its franchisees. The FDD states that these measures are in place to prevent franchisees from using the information and training provided by Basecamp Fitness to compete or restrict the company's ability to enter new markets. However, an exception exists: franchisees can own up to five percent of a publicly traded security of a corporation engaged in a competitive business without violating these restrictions.
For franchisees in Indiana, there is an addendum that modifies this section. Specifically, the Indiana addendum removes the ten-mile radius restriction, limiting the non-compete to only the Protected Territory. This means that for Indiana franchisees, the restrictions on operating a competing business only apply within the original Protected Territory and not beyond.