Are there any exceptions to Basecamp Fitness's cumulative rights under the agreement?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Additional Reservation of Rights. We and our affiliates reserve any and all rights not expressly granted to you under this Agreement, including, without limitation, the right to sell anywhere (including within the Protected Territory) products and services (including to your members and other customers) under the "Basecamp Fitness" name, or under any other name, through any channel of distribution, including via the Internet, our website, mobile applications, social media platforms or otherwise.
- D. Limitations. The rights and privileges granted to you under this Agreement 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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness and its affiliates retain specific rights not granted to the franchisee. Basecamp Fitness reserves the right to sell products and services under the "Basecamp Fitness" name or any other name through any distribution channel, including the internet, websites, mobile applications, and social media platforms, even within the franchisee's protected territory. This means that while a franchisee may have a protected territory, Basecamp Fitness can still operate or license other businesses that might compete with the franchisee's studio through alternative channels.
The rights granted to the franchisee are personal and limited to the franchised location. The franchisee cannot operate the Basecamp Fitness studio at any location other than the one specified in the agreement. Furthermore, the franchisee cannot delegate, subfranchise, or sublicense any rights under the agreement. The franchisee is also restricted from using the franchised location for any purpose other than operating a Basecamp Fitness studio without written consent from Basecamp Fitness.
These limitations are typical in franchising, as franchisors need to maintain control over their brand and distribution methods. However, prospective Basecamp Fitness franchisees should carefully consider these limitations, especially the potential for competition from online sales or other channels managed directly by Basecamp Fitness, even within their protected territory. Understanding these exceptions is crucial for assessing the potential profitability and market dynamics of a Basecamp Fitness franchise.