What is the geographic scope of the non-compete restriction after the expiration or termination of the Basecamp Fitness agreement?
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, after the expiration, termination, or transfer of the Franchise Agreement, a franchisee is restricted from engaging in or being associated with businesses offering interval training classes or high-intensity guided workouts. This restriction applies for a period of two years.
The geographic scope of this non-compete extends to the franchisee's Protected Territory and also includes an area within a ten-mile radius of any Basecamp Fitness studio, regardless of its location, whether inside or outside the franchisee's Protected Territory. This means that even if a franchisee's studio closes, they cannot operate a competing business within that specified area around any other Basecamp Fitness location.
However, the enforceability of non-compete agreements can vary by state. For example, the North Dakota Addendum notes that covenants not to compete are generally considered unenforceable in North Dakota. Similarly, the California Addendum indicates that the covenant not to compete extending beyond the termination of the franchise may not be enforceable under California law. Therefore, franchisees need to be aware of the specific regulations in their state regarding non-compete agreements.
An exception exists regarding the purchase of publicly traded securities; a franchisee can purchase up to five percent of the securities of a corporation engaged in a competitive business without violating the non-compete agreement. This allows for some investment in related industries without triggering the restrictions.