Must the Principal Operator of a Basecamp Fitness franchise have an ownership interest in the business?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We also require you to designate a Principal Owner of your business to attend our Conference each year, even if that person is not personally supervising your Basecamp Studio. We do not require the Principal Operator of your business to have any ownership interest in your business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 50–51)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, while it is recommended that franchisees personally supervise their Basecamp Studio, it is not required. If a franchisee chooses not to be the on-premise manager, they must designate a Principal Operator to fulfill this role.
Importantly, Basecamp Fitness does not mandate that the Principal Operator have any ownership interest in the franchise. However, the designated Principal Operator must complete the Initial Training Program. Additionally, both the Principal Operator and the studio manager are required to complete the Initial Training Program, while the fitness manager must complete the Day In the Life Operations Training, a segment of the Initial Training Program.
Furthermore, the franchisee and the Principal Operator, if one is designated, are required to attend on-site visits by Basecamp Fitness corporate representatives. The franchisee must also participate in scheduled business review calls and provide accurate financial statements to Basecamp Fitness. The Principal Operator, along with the studio and fitness managers, must sign a confidentiality and non-disclosure agreement that meets Basecamp Fitness's requirements.
Notably, Basecamp Fitness requires a Principal Owner to attend their annual Conference, regardless of whether that person is directly supervising the Basecamp Studio. If the franchisee is a legal entity, all individuals with any ownership interest, and their spouses, must sign a Personal Guaranty and Agreement to be Bound, ensuring they are responsible for the franchise's obligations under the Franchise Agreement.