edge_case

What happens if a Basecamp Fitness franchisee does not meet the franchisor's standards for the studio?

Basecamp_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

the Franchise Agreement (Exhibit E) and ADA (Exhibit F)).

All Principal Operators, studio and fitness managers must sign non-disclosure agreements with you.

ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL

You must construct and operate your Basecamp Studio in accordance with our standards. Specifically, your Basecamp Studio must provide certain class-based workouts that meet our standards, offer the various types of memberships we specify and sell the merchandise, including apparel, and food and beverage products we require. We may add, modify, or delete any services or products that you must offer or sell at your Basecamp Studio at any time, and change and modify our standards as we see fit. You must sell or offer for sale only those services and products approved by us and which meet our standards and specifications. You must offer the membership types that we designate and you may not create your own membership types or retail products for sale or distribution without our prior approval.

You must participate in all member programs, national campaigns, consumer sales and satisfaction programs or surveys that we require, including, for example, reciprocity, loyalty programs, rewards programs, and member challenges. We require you to participate in reciprocity. You may not create your own such programs, incentives or promotions without our explicit consent. We do not generally limit the persons to whom you may sell memberships. However, we can impose minimum age restrictions and other requirements we deem appropriate, either for safety reasons, or to preserve the goodwill of our Marks for the benefit of all franchisees.

We retain the exclusive right to use the Internet, our website, mobile application, social media platform or otherwise to provide to your members and others access to web-based or application-based fitness instruction.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 51)

What This Means (2025 FDD)

According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees must construct and operate their Basecamp Studio in accordance with the franchisor's standards. This includes providing class-based workouts that meet Basecamp Fitness's standards, offering specified membership types, and selling required merchandise, including apparel, food, and beverage products. Basecamp Fitness can modify these standards and the services or products offered at any time. Franchisees are required to sell only approved services and products that meet the franchisor's standards and specifications.

Basecamp Fitness also mandates participation in member programs, national campaigns, and consumer sales and satisfaction programs, such as reciprocity, loyalty programs, rewards programs, and member challenges. Franchisees cannot create their own programs or promotions without explicit consent from Basecamp Fitness. While there are generally no limitations on who franchisees may sell memberships to, Basecamp Fitness can impose minimum age restrictions and other requirements to ensure safety and preserve the brand's goodwill.

Franchisees must adhere to Basecamp Fitness's policies, procedures, methods, and techniques, and comply with all mandatory standards and specifications. The franchisor retains the right to change the services and products that franchisees must offer at any time and can establish maximum and/or minimum resale prices for multi-area marketing programs and special price promotions. The FDD does not specifically state what actions Basecamp Fitness may take if a franchisee fails to meet these standards.

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.