Under what conditions can Basecamp Fitness unilaterally change a franchisee's protected territory?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We cannot unilaterally change your protected territory, and there are no minimum quotas, sales volumes, market penetration, or other contingency required to maintain your protected territory; as long as your Franchise Agreement is in effect, you will retain the rights described in this paragraph. If we and you agree to renew your Basecamp franchise, we will recalculate the population in your market and reserve the right to modify your protected territory in accordance with our then current guidelines. Except as provided above, your protected territory will not change even if the population within your protected territory changes.
Source: Item 12 — TERRITORY (FDD pages 45–48)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness cannot unilaterally change a franchisee's protected territory while the Franchise Agreement is in effect. The FDD specifies that as long as the Franchise Agreement remains active, the franchisee retains the rights to their protected territory as initially defined. This provides a degree of security and predictability for the franchisee's investment and operational planning.
However, Basecamp Fitness reserves the right to modify the protected territory if the franchisee and Basecamp Fitness agree to renew the franchise. In this case, the population in the market will be recalculated, and the protected territory may be adjusted according to Basecamp Fitness's then-current guidelines. This condition acknowledges that market demographics and business conditions can change over time, potentially requiring an adjustment to the territory to maintain a fair and viable business environment for both the franchisee and the franchisor.
It is important to note that even if the population within the protected territory changes during the term of the Franchise Agreement, the protected territory will not be altered, except in the case of renewal. This clause offers further assurance to the franchisee that their territory will remain stable throughout the agreement's duration, regardless of population fluctuations. This aspect is particularly relevant in dynamic markets where population shifts are common, ensuring that the franchisee's business planning is not disrupted by demographic changes.