What representation is the agreement based on regarding the franchisee's intention to develop Basecamp Fitness studios?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the agreement is based on the franchisee's representation that they have conducted their own independent due diligence. Specifically, the franchisee represents that they have independently evaluated the market and potential of the Development Territory for Basecamp Fitness studios.

This representation is significant because Basecamp Fitness relies on the franchisee's assessment of the market when granting development rights. The franchisee is expected to have done their homework and determined that there is sufficient demand and potential for success in the designated territory. This includes assessing factors such as demographics, competition, and local market conditions.

By making this representation, the franchisee acknowledges that they are not relying solely on Basecamp Fitness's projections or assurances regarding the viability of the territory. This places the responsibility on the franchisee to conduct thorough research and analysis before committing to the development agreement. It is a common practice in franchising for franchisees to conduct their own due diligence to ensure they are making an informed investment decision.

This representation protects Basecamp Fitness from potential claims that the franchisee was misled about the market potential of the territory. It reinforces the understanding that the franchisee entered into the agreement based on their own independent evaluation and judgment. Therefore, prospective Basecamp Fitness franchisees should carefully consider this representation and ensure they have conducted sufficient due diligence before signing the development agreement.