What right does Basecamp Fitness grant to the franchisee under the Development Agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ble and is payable in full when you sign this Agreement and is fully earned by us at that time. However, you will not be required to pay an Initial Franchise Fee for any of the Basecamp Studios you develop under this Agreement.
- A. You will sign the Franchise Agreement for your first Basecamp Studio concurrently with this Agreement. A separate Franchise Agreement must be signed, on our then-current form, for each such Basecamp Studio. Upon the execution of each Franchise Agreement, the terms and conditions of that Franchise Agreement control the establishment and operation of such Basecamp Studio.
- B. The Development Fee is consideration for this Agreement and not consideration for any Franchise Agreement.
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- Development Schedule. The following provisions control with respect to your development rights and obligations:
- A. You must comply with the Development Schedule requirements regarding: (i) the date of execution of the Franchise Agreements and site approval requests; (ii) the opening date for each Basecamp Studio; and (iii) the cumulative number of Basecamp Studios to be open and continuously operating for business in the Development Territory. You represent that you have conducted your own independent
investigation and analysis of the prospects for the establishment of Basecamp Fitness studios within the Development Territory, approve of the Development Schedule as being reasonable, viable, and essential to the potential success of your business and recognize that failure to sign a Franchise Agreement, obtain a site approval, open a Basecamp Studio or have a cumulative number of Basecamp Fitness Studios open and operating, according to the applicable dates set forth in the Development Schedule, gives us the right, in our sole discretion, to immediately terminate this Agreement pursuant to Section 5.
- B.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the Development Agreement outlines the rights and obligations related to developing multiple Basecamp Fitness studios. The franchisee is granted the right to develop Basecamp Studios within a specific Development Territory, contingent upon adhering to a Development Schedule. This schedule dictates the dates for executing Franchise Agreements, submitting site approval requests, and the opening dates for each Basecamp Studio. It also specifies the cumulative number of studios that must be open and continuously operating within the Development Territory.
The Development Agreement mandates that the franchisee sign a Franchise Agreement for their first Basecamp Studio concurrently with the Development Agreement. For each subsequent studio, a separate Franchise Agreement, based on Basecamp Fitness's current form, must be signed. The terms and conditions of each Franchise Agreement will then govern the establishment and operation of that specific Basecamp Studio.
It's important to note that Basecamp Fitness retains certain rights, even within the Development Territory. They can grant other franchises or operate company-owned studios outside the Development Territory, even if they compete with the franchisee's studios. Additionally, Basecamp Fitness can grant franchises or operate studios within private establishments inside the Development Territory, provided access is limited to employees or transient guests of the business, without reciprocity with other Basecamp Studios. Basecamp Fitness also reserves the right to operate or franchise other fitness businesses under different trademarks, both within and outside the Development Territory, without compensating the franchisee.