If I transfer my Basecamp Fitness franchise, how long does the non-compete agreement last?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
rm, entity, partnership, corporation or company, own, operate, lease to or lease from, franchise, engage in, be connected with, have any interest in, or assist any person or entity engaged in owning, operating, or managing any business that offers interval training classes or high-intensity guided workouts, wherever located, whether within the Protected Territory or elsewhere.
- B. After Expiration, Termination, or Transfer. You will not, directly or indirectly for a period of two (2) years after the transfer by you, or the expiration or termination of this Agreement, on your own account or as an employee, consultant, partner, officer, director, shareholder, lender, or joint venturer of any other person, firm, entity, partnership, corporation or company, own, operate, lease to or lease from, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in offering interval training classes or high-intensity guided workouts, within the Protected Territory or within a ten (10) mile radius of any Basecamp Fitness studio, wherever located, whether within the Protected Territory or elsewhere.
- C. Reasonableness.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, if you transfer your franchise, you are subject to a non-compete agreement for two years. This agreement prevents you from engaging in or being associated with businesses offering interval training classes or high-intensity guided workouts.
The restriction applies within your Protected Territory and extends to a ten-mile radius of any Basecamp Fitness studio, regardless of location. This means that even if you transfer your franchise to someone else, you cannot immediately open a competing fitness studio near any Basecamp Fitness location.
Basecamp Fitness deems these restrictions reasonable and necessary to protect the franchise system. The franchisor believes the time and distance limitations are needed to safeguard their interests after a transfer. However, in California, the addendum to the franchise agreement states that the covenant not to compete which extends beyond the termination of the franchise may not be enforceable under California law.
This non-compete clause ensures that franchisees do not leverage the knowledge and training gained from Basecamp Fitness to directly compete with the brand or other franchisees shortly after leaving the system. However, the purchase of a publicly traded security of a corporation engaged in a competitive business or service will not violate the non-compete agreement so long as you do not own, directly or indirectly, more than five percent (5%) of the securities of such corporation.