How is the term of the Agreement related to the Franchise Agreement for a Basecamp Fitness studio?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the term of the Development Agreement is directly linked to the Franchise Agreements signed for individual Basecamp Fitness studios. Unless terminated earlier due to a breach of the agreement, the Development Agreement's term lasts until the date the Franchise Agreement is signed for the final Basecamp Fitness studio scheduled to open under the Development Schedule. This means the Development Agreement, which grants the franchisee the right to develop multiple studios, remains in effect until all studios outlined in the development schedule have their individual Franchise Agreements executed.

This condition creates a clear timeline and obligation for the franchisee to develop the agreed-upon number of Basecamp Fitness studios. The franchisee must adhere to the Development Schedule, which specifies dates for Franchise Agreement execution, site approval requests, and studio opening dates. Failure to meet these deadlines or breaching any terms within the Development Agreement or any individual Franchise Agreement can result in default and termination of the Development Agreement.

This structure ensures that Basecamp Fitness maintains control over the pace of development and can enforce compliance with its standards across all franchised locations. It also motivates the franchisee to actively pursue the development schedule, as their rights under the Development Agreement expire once all scheduled Franchise Agreements are in place. This encourages timely execution and operation of all planned Basecamp Fitness studios within the designated territory.