If a Basecamp Fitness franchisee transfers their agreement, what happens to their interest in the agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of the agreement of BASECAMP FITNESS FRANCHISOR LLC ("Franchisor") to allow ("Franchisee") to [RENEW OR TRANSFER] its Franchise Agreement dated between Franchisee and Franchisor ("Agreement"), Franchisee hereby releases and forever discharges Franchisor, and its affiliates, as well as their current or former members, directors, officers, employees and agents, in their corporate and individual capacities, and their respective heirs, personal representatives, successors and assigns, from any and all claims Franchisee may have against such parties known and unknown, foreseen and unforeseen, from the beginning of time to the date hereof, whether in law or in equity, including, but not limited to, any claims arising out of the offer or sale of any franchise to Franchisee, and any matters arising under the Agreement or under any other agreement between Franchisee and Franchisor or its affiliates. |
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| The general release does not apply with respect to claims arising under the Washington Franchise Investment |
| Protection Act, RCW 19.100, and the rules adopted thereunder. |
| [FOR TRANSFERS: Further, Franchisee acknowledges that transfer of the Agreement shall terminate Franchisee's |
| interest in the Agreement, but Franchisee will continue to be bound by all post-termination provisions of the |
| Agreement, including but not limited to the obligations of confidentiality, and the covenant not to compete |
| contained in the Agreement.] |
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, when a franchisee transfers their franchise agreement, their interest in the agreement is terminated. However, the franchisee remains bound by the post-termination provisions outlined in the agreement. These provisions include obligations of confidentiality and any covenants not to compete. This means that even after transferring the franchise, the former franchisee must still maintain the confidentiality of proprietary information and adhere to any restrictions on operating a competing business.
This condition protects Basecamp Fitness by ensuring that franchisees who transfer their business do not use confidential information or compete against the brand after the transfer. It also provides clarity for the incoming franchisee, as they know the previous owner is restricted from undermining the business.
Franchisees should carefully review the post-termination provisions in their franchise agreement to fully understand their obligations after a transfer. This includes understanding the scope and duration of any non-compete clauses and the specific information that must be kept confidential. Understanding these obligations is crucial for franchisees planning to transfer their Basecamp Fitness franchise to avoid potential legal issues after the transfer.