Under what condition are transfer fees collectable for a Basecamp Fitness franchise?
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 transfer fee of $7,500 is payable at the time of the transfer approval request if the franchisee is not transferring Franchise Agreements at that time because they have not opened any Basecamp Fitness studios. This means that if a franchisee decides to transfer their rights before actually opening a studio, they will be required to pay this fee.
This condition is important for potential Basecamp Fitness franchisees to understand, as it adds an additional cost if they choose to exit the agreement before launching their business. It is fairly common in franchising to charge transfer fees to cover the franchisor's administrative costs and the expense of finding and vetting a new franchisee. However, the specific amount and the conditions under which it is charged can vary significantly between franchise systems.
It is also important to note that if the franchisee is transferring existing Franchise Agreements for operating Basecamp Fitness studios, they are not required to pay the $7,500 transfer fee. Instead, they must comply with all conditions for transferring each of those agreements, including paying a transfer fee in connection with the transfer of each agreement. This implies that there may be separate transfer fees associated with each individual studio franchise agreement, which could potentially be higher or lower than the $7,500 fee.