Under the Basecamp Fitness franchise agreement, what is the franchisee licensed to operate?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Grant of Franchise. Subject to the provisions stated below, we license to you a personal franchise to operate a Basecamp Fitness studio (your "Basecamp Studio") in conformity with our System at the location described on the Rider (the "Franchised Location"). You accept the license and undertake the obligation to operate your Basecamp Studio using the System and in compliance with our standards. Your Basecamp Studio may only be operated at the Franchised Location. If you would like to open a second or subsequent location, you must sign a new franchise agreement on our then-current form for each location, and pay the applicable franchise fees for each location.
- B. Protected Territory. Included in the Rider is a map or description of an area surrounding the Franchised Location (the "Protected Territory"). Except as specified in this Section, in Section 2.B, or in the Rider, during the term of this Agreement, we will not operate or license to anyone else the right to operate a Basecamp Fitness studio physically located in the Protected Territory. You acknowledge and agree that: (i) we and our affiliates have the right to grant other franchises or licenses and to operate
company or affiliate owned fitness studios/businesses (including Basecamp Fitness studios) at locations outside the Protected Territory even if they compete with your Basecamp Studio for customers or members; (ii) we and our affiliates have the right to grant other franchises or licenses and to operate company or affiliate-owned fitness studios/businesses (including Basecamp Studios) within private establishments located within the Protected Territory, provided that access to those centers is limited to employees of the business, or transient guests of the business who, in either case, would not have any reciprocity with any other Basecamp Studio as a result of their use or membership in this private studio, and (iii) we and our affiliates have the right to operate, and to grant franchises or licenses to others to operate, any fitness studios/business and any other business from locations within and outside the Protected Territory under trademarks other than the Marks, without compensation to you. In addition, the boundaries of your Protected Territory may overlap with a territory we grant to another franchisee or to a Basecamp Fitness studio we or our affiliates operate, so long as no other Basecamp Fitness studio is located within your Protected Territory.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee a personal license to operate a Basecamp Fitness studio. This studio must conform to the Basecamp Fitness system at a specific location outlined in the Rider attached to the franchise agreement, referred to as the "Franchised Location." The franchisee is obligated to operate the Basecamp Studio using the franchisor's system and in compliance with their standards. The agreement specifies that the Basecamp Studio can only operate from the Franchised Location.
If a franchisee wishes to open additional locations, they must enter into a new franchise agreement for each location. This involves signing the then-current franchise agreement form and paying the applicable franchise fees for each new location. The agreement also defines a "Protected Territory" around the Franchised Location, which is detailed in the Rider with a map or description.
Basecamp Fitness states that, with certain exceptions, the franchisor will not operate or license another party to operate a Basecamp Fitness studio physically located within the franchisee's Protected Territory during the term of the agreement. However, the franchisor retains the right to grant other franchises or operate company-owned fitness studios outside the Protected Territory, even if they compete with the franchisee's studio. They can also operate or license studios within private establishments inside the Protected Territory, such as corporate gyms, as long as access is limited to employees or transient guests without reciprocity with other Basecamp Studios. Furthermore, Basecamp Fitness can operate or franchise other fitness businesses under different trademarks both inside and outside the Protected Territory without compensating the franchisee.