Under what conditions 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 is required when transferring an Area Development Agreement if the franchisee has not yet opened a Basecamp Fitness studio. In this case, the transfer fee is $7,500. This fee is due at the time of the transfer approval request.
However, if the franchisee is transferring existing Franchise Agreements for operating Basecamp Fitness studios, they are not required to pay a transfer fee at the time of the Area Development Agreement transfer. Instead, the franchisee must comply with all conditions for transferring each of those Franchise Agreements, including paying a transfer fee for each agreement, if applicable.
This means that the timing of the transfer and whether or not the franchisee has existing operating studios significantly impacts whether a transfer fee is required for the Area Development Agreement. Prospective franchisees should clarify with Basecamp Fitness the specific transfer fees associated with both the Area Development Agreement and individual Franchise Agreements to fully understand the costs involved in a potential transfer scenario.