During the term of the Basecamp Fitness Agreement, can I be a shareholder in a company that offers interval training classes?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
d in the Basecamp Studio under this Section, you will pay, remove or satisfy any liens or other encumbrances on your leasehold interests and will pay in full all amounts due the lessor under the leases existing at or prior to assumption. We are not liable for any obligation you incur before the date we assume any leases.
17. YOUR COVENANTS NOT TO COMPETE
- A. During Term. You will not, directly or indirectly, during the term of this Agreement, on your own account or as an employee, consultant, partner, officer, director, shareholder or member of any other person, firm, entity, partnership, corporation or company, own, operate, lease to or lease from, franchise, engage in, be connected with, have any interest in, or assist any person or entity engaged in owning, operating, or managing any business that offers interval training classes or high-intensity guided workouts, wherever located, whether within the Protected Territor
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, as a franchisee, you are restricted from owning interest in businesses offering interval training classes or high-intensity guided workouts during the term of the agreement. Specifically, you cannot own, operate, lease, franchise, engage in, be connected with, have any interest in, or assist any entity involved in such businesses. This restriction applies regardless of location, whether within or outside your protected territory.
However, there is an exception to this restriction. You are permitted to purchase a publicly traded security of a corporation engaged in a competitive business, provided that your direct or indirect ownership does not exceed five percent (5%) of the corporation's securities. This allows for some investment in publicly traded companies within the same industry, as long as it remains a minor stake.
These non-compete terms are designed to protect Basecamp Fitness's business model, training, and market entry strategies. The franchisor believes these restrictions are necessary to prevent franchisees from using the information and training provided by Basecamp Fitness to compete against them or to limit their ability to enter new markets. Franchisees acknowledge that these restrictions will not prevent them from pursuing other lawful trades or businesses where they have training or experience.