What is the geographic scope of the non-competition covenant after the Basecamp Fitness franchise terminates or expires?
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 the franchise agreement is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant restricts the franchisee from 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 a period of 2 years. During this time, the franchisee is prohibited from engaging in such activities within their Protected Territory or within a 10-mile radius of any Basecamp Fitness studio.
This non-compete clause ensures that former franchisees do not directly compete with Basecamp Fitness in a defined area after their franchise agreement ends, protecting the brand's market position and customer base. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities after leaving the Basecamp Fitness system.