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

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

This provision also applies if the owner pleads guilty or no contest to a felony or a crime involving moral turpitude. Additionally, Basecamp Fitness can terminate the agreement if the crime or offense is believed to have an adverse effect on the Basecamp Fitness system, the Marks, or the associated goodwill. This is a significant risk for franchisees, as any felony conviction, regardless of its direct connection to the business, could lead to the termination of their franchise agreement.

This type of clause is relatively common in franchise agreements, as franchisors want to protect their brand and reputation. However, the breadth of this clause means that a franchisee could lose their business over something seemingly unrelated to the business itself, highlighting the importance of understanding all termination clauses in the franchise agreement.