Where is the Basecamp Fitness territory described if an Area Development Agreement is signed?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign an Area Development Agreement ("ADA"), we will describe this territory in the Rider to that agreement. The territory will typically be described as a geographic area in which each of your Basecamp Studios must be developed. The criteria we use for determining these territories is simply geographic markets in which we believe it may be feasible to develop a Basecamp Studio. If you are in compliance with the Development Schedule set forth in the Rider, then until your protected territory rights expire, we will not develop or operate or grant anyone else a franchise to develop and operate a Basecamp Studio from any location in the Development Territory, except for fitness studios within private establishments where access to these studios is limited to employees of the business, or transient guests of the business who, in either case, would not have reciprocity with any other Basecamp Studio as a result of their use or membership in this private studio. However, we do have the right to operate, or grant others the right to do so, fitness studios/businesses except under the Basecamp Fitness name within or outside your protected territory, and fitness studios/businesses operated under the Basecamp Fitness name or Marks outside your protected territory, even if they compete for members with your studio, and even if the territorial boundaries for that franchise overlap with the boundaries for your territory. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You will sign the Franchise Agreement for your first Basecamp Studio contemporaneously with signing the ADA. You will sign our then-current Franchise Agreement for each subsequent Basecamp Studio that you open according to the development schedule in the ADA. We will determine or approve the site of any
Source: Item 12 — TERRITORY (FDD pages 45–48)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, if a franchisee signs an Area Development Agreement (ADA), the specific territory granted to them will be detailed in a Rider attached to that agreement. This territory is typically defined as a geographic area within which the franchisee is expected to develop their Basecamp Studios. Basecamp Fitness uses geographic markets they believe are feasible for studio development to determine these territories.
As long as the franchisee adheres to the development schedule outlined in the Rider, Basecamp Fitness will not develop, operate, or grant franchises to others within the Development Territory. This restriction does not apply to fitness studios within private establishments, such as those limited to employees or transient guests, without reciprocity with other Basecamp Studios. However, Basecamp Fitness retains the right to operate or franchise other fitness businesses, even under different names, both inside and outside the franchisee's protected territory, and even under the Basecamp Fitness name outside the protected territory, potentially creating competition.
It is important to note that Basecamp Fitness franchisees do not receive an exclusive territory. They may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by Basecamp Fitness. The Franchise Agreement for the first Basecamp Studio is signed concurrently with the ADA, and subsequent studios are governed by the then-current Franchise Agreement, with site approval determined by Basecamp Fitness's standards for sites and territories.