Does Basecamp Fitness require franchisees to purchase insurance from approved sources?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
All equipment, furnishings, fixtures, signs, software, software support and security monitoring, supplies, branded items, marketing, maintenance services, insurance and products you purchase for use or sale in your Basecamp Studio must meet our specifications. Additionally, all membership types you offer as well as workouts provided through your Basecamp Studio must meet our specifications and, where allowed by applicable law, comply with our pricing guidelines. Those specifications may include minimum standards for delivery, performance, design, appearance, and quality. We will issue the specifications to you before you begin operating. We may include these specifications in the manual that we provide to you online, or we may issue them separately.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees must ensure that the insurance they purchase meets Basecamp Fitness's specifications. While the document states that all insurance purchased for use in the Basecamp Studio must meet their specifications, it does not explicitly state whether franchisees are required to purchase insurance from only approved sources.
Basecamp Fitness does maintain the right to designate single sources from whom franchisees must purchase required products and services. They may also negotiate preferred vendor contracts that provide favorable pricing to franchisees. A list of current preferred vendor contracts is available to franchisees after signing the Franchise Agreement.
Basecamp Fitness may require franchisees to purchase certain services from approved vendors. When Basecamp Fitness has a designated vendor (other than a mandatory vendor), if a franchisee wants to purchase from other vendors the items or services for which that vendor has been designated, the franchisee must notify Basecamp Fitness in writing and obtain their approval. If a franchisee seeks approval of a new supplier (or if the supplier applies directly to Basecamp Fitness for approval), Basecamp Fitness will require the supplier to pay a nonrefundable fee of $300 before they will consider approving their application. This fee is intended to defer Basecamp Fitness's cost of reviewing the supplier.
Therefore, while Basecamp Fitness does not explicitly state that franchisees must purchase insurance from approved sources, they do have the right to require franchisees to purchase insurance from designated vendors. A prospective franchisee should clarify with Basecamp Fitness whether there are designated vendors for insurance and what the requirements are for using alternative vendors.