If Basecamp Fitness assigns the Franchise Agreement, what happens to their obligations?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee is located in New York or a resident of New York, the franchisor will not make an assignment except to an assignee who, in Basecamp Fitness's good faith judgment, is willing and able to assume its obligations under the agreement.

This clause ensures that if Basecamp Fitness decides to assign the Franchise Agreement to another party, that party must be capable of fulfilling the obligations outlined in the agreement. This protects the franchisee by ensuring the new franchisor has the willingness and capability to maintain the standards and support expected under the franchise agreement.

This provision is specific to franchises offered and sold in New York, indicating that franchisees outside of New York may not have the same level of protection regarding the assumption of obligations by an assignee. Franchisees operating outside of New York should carefully review their franchise agreements to understand the conditions under which Basecamp Fitness can assign the agreement and what recourse they have if the new assignee does not meet the required standards.