Does the non-compete covenant after termination of the Basecamp Fitness franchise apply to my Protected Territory?
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, the non-competition covenant after the franchise is terminated or expires does apply to your Protected Territory. Specifically, it states that you cannot be involved in any fitness center that offers interval training or high-intensity guided workouts (including as a creditor or landlord) for 2 years in your Protected Territory.
In addition to the Protected Territory, the non-compete also extends to within a 10-mile radius of any Basecamp Fitness studio. This means that even if you operate outside your Protected Territory, you are still restricted from engaging in a competing business within 10 miles of another Basecamp Fitness location.
This restriction is in place to protect Basecamp Fitness's market share and prevent former franchisees from directly competing with existing locations. Prospective franchisees should carefully consider the implications of this non-compete clause, especially if they plan to remain in the fitness industry after leaving the Basecamp Fitness system. It is important to fully understand the geographic scope and duration of the restriction before signing the Franchise Agreement.