After termination of the Franchise Agreement, can a Basecamp Fitness franchisee continue to use the Information?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
All of the information we or our affiliates obtain from you or about your Basecamp Studio, and all information in your records or ours concerning the members and other customers of your Basecamp Studio (the "Information") and all revenues we derive from the Information will be our property.
However, you may at any time during the term of this Agreement use in the operation of your Basecamp Studio (but for no other purpose), to the extent lawful and at your sole risk and responsibility, any information that you acquire from third parties in operating your Basecamp Studio, such as member/customer data.
The Information (except for information you provide to us or our affiliates with respect to you and your affiliates, including your respective officers, directors, shareholders, partners or equity members of your entity) will become our property which we may use for any reason as we deem necessary or appropriate in our discretion.
Following termination or expiration of this Agreement, you will no longer use any of the Information, except to comply with your post-term obligations under this Agreement.
You must comply with all standards, laws, rules, regulations, or any equivalent thereof relating to personal information, data privacy, and data protection, including. but not limited to, as applicable, the California Consumer Privacy Act, Cal.
Civ.
Code Section 1798.100 et seq., and must comply with any privacy policies or data protection and breach response policies we periodically may establish.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are restricted from using the Information obtained during the franchise agreement after its termination or expiration, except to comply with post-term obligations. The term 'Information' refers to all data obtained from the franchisee or about their Basecamp Studio, including member and customer data, and all revenues derived from this Information. This Information becomes the property of Basecamp Fitness, which they may use for any reason they deem necessary or appropriate.
During the term of the Franchise Agreement, franchisees can use information acquired from third parties in operating their Basecamp Studio, such as member/customer data, but only for the operation of their studio and at their own risk and responsibility, provided it is lawful. However, this right ceases upon termination or expiration of the agreement.
This provision ensures that Basecamp Fitness retains control over critical business data and customer information, preventing former franchisees from leveraging this data to compete against the brand or other franchisees after the agreement ends. Franchisees must also adhere to all laws and regulations regarding personal information, data privacy, and data protection, including the California Consumer Privacy Act, and comply with any privacy policies established by Basecamp Fitness.