During the term of the Basecamp Fitness franchise, what non-competition covenants apply to me?
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. |
| p. Your death or disability | Section 13.B – Franchise Agreement Area Development Agreement–NotApplicable | Your heirs can assume your rights, but if they do, they must meet the transfer requirements. |
| q. Non-competition covenants during the term of the franchise | Section 17.A – Franchise Agreement and Section 9 – Area Development Agreement | No involvement in any fitness center that offers interval training or high-intensity guided workouts (including as creditor or landlord), wherever located. |
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, during the term of the franchise agreement, franchisees are subject to non-competition covenants. Specifically, franchisees are prohibited from any involvement in any fitness center that offers interval training or high-intensity guided workouts. This restriction applies regardless of the location of the fitness center and includes involvement as a creditor or landlord.
This means that as a Basecamp Fitness franchisee, you cannot own, operate, invest in, or even lease property to a competing fitness center that provides similar services, such as interval training or high-intensity guided workouts. This restriction is broad and aims to protect Basecamp Fitness's market position and business model.
It is important for prospective franchisees to fully understand the scope of these non-competition covenants. Franchisees should carefully review Section 17.A of the Franchise Agreement and Section 9 of the Area Development Agreement to fully understand the restrictions. Franchisees should also consider how these restrictions might impact their other business interests or potential future ventures.