How does the term of the agreement relate to the Franchise Agreement for a Basecamp Fitness studio?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Term. Unless sooner terminated in accordance with Section 5 of this Agreement, the term of this Agreement and all rights granted to you will expire on the date that you sign the Franchise Agreement for the last Basecamp Studio that is scheduled to be opened under the Development Schedule.
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- Default and Termination. You will be deemed in default under this Agreement if you breach any of the terms of this Agreement or if you or any affiliate of yours breaches any of the terms of any Franchise Agreement or any other agreement that you or your affiliates have with us or our affiliates. For purposes of this Agreement, an "affiliate" of any person will be any person or entity that controls that person, is under the control of that person, or is under common control with that person.
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 term of the Development Agreement is linked to the Franchise Agreements signed for individual Basecamp Fitness studios. Unless terminated earlier, the Development Agreement remains in effect until the date the Franchise Agreement is signed for the last Basecamp Fitness studio scheduled to open under the Development Schedule. This means the Development Agreement's duration is tied to the franchisee's commitment to open a specific number of studios within a defined timeframe.
This arrangement provides Basecamp Fitness with assurance that the developer will pursue the agreed-upon expansion plan. For the franchisee, it means that their rights and obligations under the Development Agreement continue as long as they are actively developing studios according to the schedule. Failure to adhere to the Development Schedule or breaching any Franchise Agreement can result in default and potential termination of the Development Agreement.
It's important to note that each Franchise Agreement operates independently. The continuation of each individual Franchise Agreement is governed by its own terms and conditions. Therefore, even if the Development Agreement remains in effect, a specific studio's Franchise Agreement could be terminated due to non-compliance or other reasons outlined in that agreement. The franchisee must satisfy all monetary and material obligations under the Franchise Agreements for all existing Basecamp Fitness studios to remain in good standing.
Prospective Basecamp Fitness franchisees should carefully review the Development Schedule and the terms of the Franchise Agreement to fully understand their obligations and the implications for the duration of their agreements. They should also be aware that Basecamp Fitness may modify the Franchise Agreement over time, potentially introducing different fees and obligations, although no initial franchise fee will be required for subsequent agreements under the Development Agreement.