If Basecamp Fitness exercises its option to purchase my business, at what value will the assets be purchased?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness has the option to purchase all or a portion of the assets of your Basecamp Studio at book value. This option can be exercised upon the termination or expiration without renewal of your Franchise Agreement. Additionally, Basecamp Fitness can take an assignment of your leases under the same circumstances.

For a prospective franchisee, this means that if you decide not to renew your franchise agreement, or if the agreement is terminated, Basecamp Fitness has the right to buy your studio's assets at their book value, which is the original cost of an asset less any accumulated depreciation. This could be lower than the market value of the assets, potentially resulting in a financial loss for the franchisee.

It is important for potential franchisees to understand the implications of 'book value' and how it is calculated, as this will directly impact the financial outcome if Basecamp Fitness decides to exercise its purchase option. Franchisees should consult with a financial advisor to fully understand the potential financial implications.