What statute governs the conditions under which the franchisor can repurchase a Basecamp Fitness business?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | ||
|---|---|---|
| Franchise or Other | ||
| Provision | Agreements | Summary |
| n. Our right of first refusal | Section 19 – Franchise | We have the right to match any offer for your business. |
| to acquire your business | Agreement | |
| 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, the franchisor's option to purchase a franchisee's business is detailed in Section 16 of the Franchise Agreement. Basecamp Fitness has the option to purchase all or a portion of the assets of the Basecamp Studio at book value and assume the leases if the Franchise Agreement terminates or expires without renewal.
Additionally, Basecamp Fitness retains the right of first refusal to acquire a franchisee's business, as stated in Section 19 of the Franchise Agreement. This means that Basecamp Fitness has the option to match any offer made by a third party to purchase the franchisee's business.
These conditions are specified within the franchise agreement, outlining the circumstances under which Basecamp Fitness can exercise its right to repurchase the business. It is important for potential franchisees to carefully review Sections 16 and 19 of the Franchise Agreement to fully understand the terms and conditions related to the franchisor's purchase options and right of first refusal.