What is the term length of the new franchise agreement upon transfer of a Basecamp Fitness franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
reement are personal in nature and may not be used at any location other than the Franchised Location. You do not have the right to delegate, subfranchise, or sublicense any of your rights under this Agreement. Without our written consent, you may not use the Franchised Location for any purpose other than the operation of a Basecamp Fitness studio.
2. TERM; RENEWAL RIGHTS
- A. Initial Term. The term of this Agreement is for six (6) years commencing on the Effective Date of this Agreement, unless terminated earlier as provided in this Agreement.
- B. Renewal. You have the right to renew your Basecamp Fitness franchise for the Franchised Location for an additional five (5) year term, provided you meet all of the following conditions:
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- you have given us written notice at least two hundred ten (210) days prior to the end of the then current term of this Agreement of your desire to renew;
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- you and all entities you are a member, partner or shareholder of, are in compliance with all agreements between you and us and between you and our affiliates, and there has been no series of defaults by you thereunder (i.e., an abnormal frequency of defaults or a default that has occurred repeatedly, or a combination thereof), whether or not such defaults were cured;
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- you make, or provide for in a manner satisfactory to us, such renovation and reequipping of your Basecamp Studio as we dee
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
The 2025 Basecamp Fitness Franchise Disclosure Document states that the initial term of the franchise agreement is six years, commencing on the effective date outlined in the agreement's rider. Franchisees have the option to renew their franchise for an additional five-year term, provided they meet specific conditions. These conditions include giving written notice at least 210 days before the current term ends, complying with all agreements, renovating the Basecamp Studio to meet current standards, paying a $5,000 renewal fee at least 15 days before the term expires and signing a general release.
However, the document does not explicitly state the term length of a new franchise agreement specifically upon the transfer of a Basecamp Fitness franchise. The document outlines the initial term and renewal options for the original franchisee but does not specify if a transfer would result in a new agreement with a fresh term or if the remaining term of the original agreement would be transferred to the new franchisee.
Therefore, a prospective franchisee should clarify with Basecamp Fitness what the term length would be for a new franchise agreement in the event of a transfer. Understanding the term length is crucial for making informed decisions about the investment and long-term commitment involved in acquiring a transferred franchise.