factual

What happens if a Basecamp Fitness franchisee or owner is convicted of a felony?

Basecamp_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. you or any of your owners are proven to have engaged in fraudulent conduct, or are convicted of, or plead guilty or no contest to a felony or a crime involving moral turpitude, or any other crime or offense that we believe is reasonably likely to have an adverse effect on the System, the Marks or the goodwill associated therewith;

Source: Item 22 — CONTRACTS (FDD pages 61–62)

What This Means (2025 FDD)

According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee or any of their owners are convicted of a felony, Basecamp Fitness has the right to terminate the franchise agreement without providing an opportunity to cure the default. This termination is effective immediately upon delivering notice.

This provision protects Basecamp Fitness by ensuring that individuals associated with the brand maintain a certain level of integrity and do not engage in activities that could harm the brand's reputation. The FDD specifies that conviction of a felony, a crime involving moral turpitude, or any other crime or offense that Basecamp Fitness believes is reasonably likely to have an adverse effect on the System, the Marks or the goodwill associated therewith can trigger termination.

For a prospective franchisee, this means that maintaining a clean criminal record is essential. Any past or future felony convictions, or even a plea of guilty or no contest, could jeopardize their investment and ability to operate a Basecamp Fitness franchise. This clause extends not only to the franchisee but also to any owners involved in the business.

It is important for potential franchisees to fully understand the implications of this clause and to ensure that all individuals associated with the ownership of the franchise meet the required standards of conduct. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement, particularly regarding termination clauses.

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.