For how long does the non-competition covenant apply after the Basecamp Fitness franchise is terminated or expires?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise or Other | |||
| Provision | Agreements | Summary | |
| n. Our right of first refusal | Section 19 – Franchise | We have the right to match any offer for your business. | |
| to acquire your business | Agreement | ||
| o. Our option to purchase your business | Section 16 – Franchise Agreement | We can purchase from you at book value all or a portion of the assets of your Basecamp Studio and take an assignment of your leases, upon the termination or expiration without renewal of your Franchise Agreement. | |
| p. Your death or disability | Section 13.B – Franchise Agreement Area Development Agreement – Not Applicable | Your heirs can assume your rights, but if they do, they must meet the transfer requirements. | |
| q. Non-competition covenants during the term of the franchise | Section 17.A – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord), wherever located. | |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 17.B – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord) for 2 years in your Protected Territory or within a 10 mile radius of any Basecamp Studio. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are subject to a non-competition covenant for a period of two years after the franchise is terminated or expires. This restriction prevents former franchisees from engaging in any fitness center that offers interval training or high-intensity guided workouts.
The non-competition covenant applies within the franchisee's Protected Territory or within a 10-mile radius of any Basecamp Fitness studio. This means that a franchisee cannot be involved in a competing fitness business, even as a creditor or landlord, within these geographical limits for the specified duration.
This post-term non-compete agreement is a fairly standard practice in franchising to protect the brand and prevent franchisees from using the franchisor's confidential information and business model to compete against the system after leaving. Prospective Basecamp Fitness franchisees should carefully consider the implications of this restriction, especially if they have prior experience or future aspirations in the fitness industry. It is important to understand the precise boundaries of the Protected Territory to assess the potential impact on future business opportunities.