factual

Does Basecamp Fitness grant franchisees an exclusive territory?

Basecamp_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.

Once the site for your Basecamp Studio has been approved, we will grant you a protected territory.

The criteria we use for determining the boundaries of the protected territory in your Franchise Agreement include population as discussed above, growth trends of population, apparent degree of affluence of population, the density of residential and business entities, traffic generators, driving time, and natural boundaries. During the term of your Franchise Agreement, we will not operate or license to anyone else the right to operate a Basecamp Fitness studio that is physically located in your protected territory, except for fitness studios within private establishments where access to those studios is limited to employees of the business, or transient guests of the business who, in either case, would not have reciprocity with any other Basecamp Studio as a result of their use or membership in this private studio. However, we and our affiliates can operate fitness studios/businesses, or grant others the right to do so, outside your protected territory, including studios operated under the Basecamp Fitness name or Marks, even if they compete for

members with your studio, and even if the territorial boundaries for that franchise overlap with the boundaries for your territory. We and our affiliates also have the right to operate, and to grant franchises or licenses to others to operate, any fitness studio/business and any other business from locations within this territory under trademarks other than "Basecamp Fitness", without compensation to you.

To identify your protected territory we will use mapping and demographic software to draw a circle around your location. The determination of your protected territory is within our sole discretion. Although the description of the boundaries outlining the protected territory may vary, the territory will not be larger than an area surrounding your Basecamp Studio that has no more than 50,000 people, based on census projections for up to five years from the date of your Franchise Agreement.

There may be now, or in the future, Orangetheory, Anytime Fitness and/or Bar Method locations in the same market as current or future Basecamp Fitness franchisee territory(ies). We also have no obligation to resolve conflicts between a Basecamp Fitness franchisee and an Orangetheory franchisee.

Source: Item 12 — TERRITORY (FDD pages 45–48)

What This Means (2025 FDD)

According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Instead, Basecamp Fitness grants a "protected territory" once the site for the studio has been approved. This means that while franchisees are given some territorial protection, they may still face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Basecamp Fitness. This lack of exclusivity is a critical factor for potential franchisees to consider, as it directly impacts the competitive landscape they will operate in.

Basecamp Fitness determines the boundaries of the protected territory using factors such as population, growth trends, affluence, density of residential and business entities, traffic generators, driving time, and natural boundaries. The protected territory will not be larger than an area surrounding the Basecamp Studio that has no more than 50,000 people, based on census projections for up to five years from the date of the Franchise Agreement. However, Basecamp Fitness and its affiliates retain the right to operate fitness studios/businesses outside the franchisee's protected territory, even under the Basecamp Fitness name, potentially leading to competition for members.

Furthermore, Basecamp Fitness and its affiliates can operate fitness studios/businesses within the protected territory under trademarks other than "Basecamp Fitness" without compensating the franchisee. The document also notes the presence of other fitness franchises like Orangetheory, Anytime Fitness, and Bar Method in the same markets as Basecamp Fitness, and states that Basecamp Fitness is not responsible for resolving conflicts between a Basecamp Fitness franchisee and an Orangetheory franchisee. Prospective franchisees should carefully evaluate the potential impact of these competitive factors on their studio's performance and profitability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.