Can Basecamp Fitness operate or license other Basecamp Fitness studios within a franchisee's protected territory?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
s discussed above, growth trends of population, apparent degree of affluence of population, the density of residential and business entities, traffic generators, driving time, and natural boundaries. During the term of your Franchise Agreement, we will not operate or license to anyone else the right to operate a Basecamp Fitness studio that is physically located in your protected territory, except for fitness studios within private establishments where access to those studios is limited to employees of the business, or transient guests of the business who, in either case, would not have reciprocity with any other Basecamp Studio as a result of their use or membership in this private studio. However, we and our affiliates can operate fitness studios/businesses, or grant others the right to do so, outside your protected territory, including studios operated under the Basecamp Fitness name or Marks, even if they compete for
members with your studio, and even if the territorial boundaries for that franchise overlap with the boundaries for your territory. We and our affiliates also have the right to operate, and to grant franchises or licenses to others to operate, any fitness studio/business and any other business from locations within this territory under trademarks other than "Basecamp Fitness", without compensation to you.
We may also have situations where we designate a "TBD" (to be determined) territory. If you receive a TBD territory, you have the right to look for a site in any area that has not already been given as a protected territory to another Basecamp Fitness studio. However, if you find a proposed site in near proximity to another Basecamp Fitness studio, even though not in that studio's protected territory, we may offer the site to the existing franchisee before we agree to assign that area to you or grant you the right to develop your studio at that site.
Relocation
You must provide us at least 60 days' prior notice, pay a relocation fee and reimburse our expenses in reviewing the new location, and obtain our consent before you intend to relocate your Basecamp Studio. The new location must be within your protected territory, and it may not be located within any territory we grant to any other franchisee. You must upgrade the new space to comply with all of our current specifications.
Customers
We do not restrict the members or customers you may serve, and you generally may solicit members or other customers outside your territory, including through channels of distribution such as telemarketing or other direct marketing sales. However, all of your advertising must be approved by us and you must obtain our written approval before you establish or have established any digital or electronic medium or method of communication, including a website, web page, review or opinion page, social media and/or social networking site, channel, avatar, profile, including an online business profile, account, hashtag, user name or application, whether web-based or otherwise, or keyword advertising, pay-per-click advertising or other search engine marketing, relating to or making reference to us, your studio, or to the Basecamp Fitness system. We and our affiliates have the right to sell products and services (like apparel and related products) both inside and outside your territory, using the "Basecamp Fitness" name, any derivative or any other name, through any channel of distribution, including the Internet, catalog sales, telemarketing, or other direct marketing, without any compensation to you.
Source: Item 12 — TERRITORY (FDD pages 45–48)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness generally will not operate or license another Basecamp Fitness studio within a franchisee's protected territory during the term of the Franchise Agreement. However, there are exceptions to this rule. Basecamp Fitness can operate or license fitness studios within private establishments where access is limited to employees or transient guests of the business, without reciprocity with other Basecamp Fitness studios.
Basecamp Fitness and its affiliates retain the right to operate fitness studios/businesses, or grant others the right to do so, outside a franchisee's protected territory, even under the Basecamp Fitness name, and even if they compete for members or overlap territorial boundaries. They also have the right to operate or franchise other types of businesses under different trademarks within the protected territory without compensating the franchisee. This means a Basecamp Fitness franchisee could face competition from the franchisor or other franchisees operating similar businesses nearby.
For franchisees who sign an Area Development Agreement (ADA), Basecamp Fitness will not develop, operate, or grant franchises to others within the Development Territory, with the same exception for fitness studios within private establishments. However, Basecamp Fitness retains the right to operate or grant others the right to operate fitness studios/businesses under different names within or outside the protected territory, and fitness studios under the Basecamp Fitness name outside the protected territory, even if they compete for members or overlap territorial boundaries. It is important to note that Basecamp Fitness franchisees do not receive an exclusive territory and may face competition from various sources, including other franchisees and company-owned outlets.
Prospective franchisees should be aware that the protected territory is not guaranteed in perpetuity. If a franchisee and Basecamp Fitness agree to renew the franchise, Basecamp Fitness reserves the right to modify the protected territory based on recalculated population data and current guidelines. Furthermore, the rights to the protected territory under an ADA expire if the franchisee fails to meet the development schedule or open a Basecamp Studio by the required date, potentially leading to termination of the ADA and Franchise Agreement without a refund of fees.