What section of the Basecamp Fitness Franchise Agreement discusses our option to purchase your business?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreements | Summary | |
|---|---|---|---|
| o. Our option to purchase your business | Section 16 – Franchise Agreement | We can purchase from you at book value all or a portion of the assets of your Basecamp Studio and take an assignment of your leases, upon the termination or expiration without renewal of your Franchise Agreement. |
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, Section 16 of the Franchise Agreement outlines the terms of Basecamp Fitness's option to purchase your business. This section details the circumstances under which Basecamp Fitness can exercise this option.
Specifically, Basecamp Fitness has the right to purchase all or a portion of the assets of your Basecamp Studio at book value. Additionally, they can take an assignment of your leases. This right is triggered upon the termination or expiration without renewal of your Franchise Agreement.
For a prospective franchisee, this means that if the Franchise Agreement is terminated or not renewed, Basecamp Fitness has the option to buy the assets of the studio at book value, which may or may not reflect the market value. It is important to understand how 'book value' is defined in the agreement and to consider this potential outcome when evaluating the franchise opportunity.