After the Basecamp Fitness franchise is terminated or expires, what non-competition covenants apply to me?
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, if your franchise is terminated or expires, you are subject to certain non-competition covenants. Specifically, you cannot be involved in any fitness center that offers interval training or high-intensity guided workouts. This restriction includes involvement as a creditor or landlord.
The non-compete restriction lasts for 2 years. The geographic scope of this restriction includes your Protected Territory and extends to a 10-mile radius of any Basecamp Fitness studio. This means that for two years after your franchise agreement ends, you cannot participate in a competing fitness business within these defined areas.
These types of non-compete clauses are common in franchise agreements to protect the brand and market share of the franchisor. Prospective Basecamp Fitness franchisees should carefully consider the implications of these restrictions, especially if they plan to remain in the fitness industry after leaving the Basecamp Fitness system. It is advisable to seek legal counsel to fully understand the scope and enforceability of these covenants in your specific location.