What right does a Basecamp Fitness franchisee receive when signing a Franchise Agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
at your computer system be used for business purposes only, and not for entertainment, personal social networking site access, or other matters unrelated to your business.
ITEM 12 TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. When you sign a Franchise Agreement, you will receive the right to operate a single Basecamp Studio at a specific location that we must approve. If the site for your Basecamp Studio has been identified before you sign the Franchise Agreement, then you must operate the studio at that site. If the site becomes unavailable to you for any reason, it is your obligation to select a new location, and to obtain our approval of that location before you acquire the site, and before you obtain any rights in the location. If a site has not been identified, then we will designate an area, and you may locate your Basecamp Studio at any site we approve within that area, so long as the site you select is not also within a territory of another Basecamp Studio or an Anytime fitness franchisee (for a limited time as discussed below). Once the site for your Basecamp Studio has been approved, we will grant you a protected territory. (If you sign an Area Development Agreement with us, we will also give you a protected territory at the time you sign that agreement.) The limitations on us in that territory are described below.
If you sign an Area Development Agreement ("ADA"), we will describe this territory in the Rider to that agreement. The territory will typically be described as a geographic area in which each of your Basecamp Studios must be developed. The criteria we use for determining these territories is simply geographic markets in which we believe it may be feasible to develop a Basecamp Studio. If you are in compliance with the Development Schedule set forth in the Rider, then until your protected territory rights expire, we will not develop or operate or grant anyone else a franchise to develop and operate a Basecamp Studio from any location in the Development Territory, except for fitness studios within private establishments where access to these 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 do have the right to operate, or grant others the right to do so, fitness studios/businesses except under the Basecamp Fitness name within or outside your protected territory, and fitness studios/businesses operated under the Basecamp Fitness name or Marks outside your protected territory, 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. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You will sign the Franchise Agreement for your first Basecamp Studio contemporaneously with signing the ADA. You will sign our then-current Franchise Agreement for each subsequent Basecamp Studio that you open according to the development schedule in the ADA. We will determine or approve the site of any
future Basecamp Studios and any protected territories for those Basecamp Studios based on our then-current standards for sites and territories.
Your rights in this territory will end at the earlier of (i) the date your ADA expires or terminates; (ii) the date on which your last Basecamp Studio must be open under the terms of the development schedule; and (iii) the date when the individual protected territories given to you under a franchise agreement for your final Basecamp Studio are determined. If the protected territory covers more than one city, county or designated market area, the protection for each particular city, county or designated market area will also expire on the date when we determine the protected territory to be given to you under a franchise agreement for your final Basecamp Studio to be developed in that city, county or designated market area. When your rights in a protected territory have expired under the ADA, you will still have the rights granted to you in any portion of these territories under an individual Franchise Agreement. When you sign a Franchise Agreement, we will give you a protected territory and describe it in a Rider to that agreement.
You are responsible if we terminate the ADA because you are unable to secure one or more acceptable, proposed locations to fulfill the development schedule in your ADA.
Source: Item 12 — TERRITORY (FDD pages 45–48)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, when a franchisee signs a Franchise Agreement, they are granted the right to operate a single Basecamp Studio at a specific location that Basecamp Fitness approves. If the site is already identified before signing, the franchisee must operate at that location. If the site becomes unavailable, the franchisee is responsible for finding a new location and securing Basecamp Fitness's approval before acquiring the site or any rights to it. If a site hasn't been identified yet, Basecamp Fitness will designate an area where the franchisee can select a site, provided it's not within another Basecamp Studio or Anytime Fitness franchisee's territory. Once the site is approved, Basecamp Fitness will grant a protected territory.
Basecamp Fitness may attach a map to the Franchise Agreement to identify the protected territory or describe the area surrounding the location, considering traffic patterns and natural boundaries. Protected territories may overlap, but Basecamp Fitness will not approve a new Basecamp studio or relocate an existing one into another studio's protected territory. The franchisor cannot unilaterally change the protected territory, and there are no minimum quotas or sales volumes required to maintain it, as long as the Franchise Agreement is in effect. However, if the franchise is renewed, Basecamp Fitness reserves the right to modify the protected territory based on then-current guidelines and recalculated population data.
The criteria Basecamp Fitness uses to determine the boundaries of the protected territory include population, growth trends, affluence, density of residential and business entities, traffic generators, driving time, and natural boundaries. During the Franchise Agreement term, Basecamp Fitness will not operate or license another Basecamp Fitness studio within the franchisee's protected territory, except for fitness studios within private establishments with limited access. However, Basecamp Fitness and its affiliates can operate or grant others the right to operate fitness studios/businesses outside the protected territory, even under the Basecamp Fitness name, and even if they compete with the franchisee's studio or have overlapping territorial boundaries. They also have the right to operate or franchise any fitness studio/business under other trademarks within the territory without compensating the franchisee.
It is important to note that the franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. The protected territory will not be larger than an area surrounding the Basecamp Studio that has no more than 50,000 people, based on census projections for up to five years from the date of the Franchise Agreement. The determination of the protected territory is within Basecamp Fitness's sole discretion.