After the Basecamp Fitness franchise is terminated or expires, what is the geographic scope of the non-competition covenant?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise or Other | |||
| Provision | Agreements | Summary | |
| n. Our right of first refusal | Section 19 – Franchise | We have the right to match any offer for your business. | |
| to acquire your business | Agreement | ||
| o. Our option to purchase your business | Section 16 – Franchise Agreement | We can purchase from you at book value all or a portion of the assets of your Basecamp Studio and take an assignment of your leases, upon the termination or expiration without renewal of your Franchise Agreement. | |
| p. Your death or disability | Section 13.B – Franchise Agreement Area Development Agreement – Not Applicable | Your heirs can assume your rights, but if they do, they must meet the transfer requirements. | |
| q. Non-competition covenants during the term of the franchise | Section 17.A – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord), wherever located. | |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 17.B – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord) for 2 years in your Protected Territory or within a 10 mile radius of any Basecamp Studio. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, after the franchise is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant restricts involvement in any fitness center that offers interval training or high-intensity guided workouts, including acting as a creditor or landlord.
The geographic scope of this restriction extends for 2 years within the franchisee's Protected Territory or within a 10-mile radius of any Basecamp Fitness studio. This means that a former franchisee cannot operate or be involved with a competing fitness center within these defined areas for the specified duration.
This post-term non-compete agreement ensures that former franchisees do not directly compete with existing Basecamp Fitness locations shortly after leaving the franchise system, protecting the brand's market share and the investment of other franchisees. A prospective franchisee should carefully consider the implications of this restriction, especially if they plan to remain in the fitness industry after their franchise agreement ends.