Under what condition is a Basecamp Fitness franchisee required to pay a $7,500 transfer fee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
r by this Agreement;
- If the transferee is a corporation, partnership, or limited liability company, no new voting interest in the transferee shall be issued to any person or entity without obtaining our prior written consent;
- You shall have fully paid and satisfied all of your obligations to us and our affiliates, including any under any Franchise Agreements for the operation of Basecamp Fitness studios; provided, however, you shall not be required to pay to
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, a franchisee is required to pay a $7,500 transfer fee under specific circumstances related to the transfer of their area development agreement. This fee is applicable if the franchisee seeks to transfer their rights before opening any Basecamp Fitness studios.
In practical terms, this means that if a franchisee decides to transfer their rights to a third party before establishing and operating a Basecamp Fitness studio, they will be assessed a $7,500 transfer fee at the time they request approval for the transfer. This condition is in place because Basecamp Fitness likely incurs costs in evaluating and approving the transfer, and the fee compensates them for these expenses when no studios are yet in operation.
This policy encourages franchisees to proceed with opening their studios as planned. It also ensures that Basecamp Fitness is compensated for their time and resources in the event a franchisee decides to transfer the agreement before contributing to the brand's presence and revenue through an operating studio. Prospective franchisees should consider this potential cost when evaluating their commitment to developing and operating a Basecamp Fitness franchise.