Upon termination or expiration without renewal of my Basecamp Fitness Franchise Agreement, can Basecamp Fitness purchase only a portion of the assets of my Basecamp Studio?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, upon termination or expiration without renewal of your Franchise Agreement, Basecamp Fitness has the option to purchase all or a portion of the assets of your Basecamp Studio. They can also take an assignment of your leases. This is according to Section 16 of the Franchise Agreement.

This means that if your franchise agreement is terminated or expires and is not renewed, Basecamp Fitness has the right, but not the obligation, to buy some or all of your studio's assets. The purchase would be at book value. This could include equipment, fixtures, and other tangible property. They can also take over your studio's lease agreement.

For a prospective franchisee, this clause has significant implications. It means that upon exiting the franchise system, you may be required to sell your assets to Basecamp Fitness at book value, which may or may not reflect the fair market value. It is important to understand how 'book value' is defined in the Franchise Agreement and to consider obtaining an independent valuation of your assets to ensure you receive fair compensation. You should discuss with Basecamp Fitness how they determine book value and what recourse you have if you disagree with their valuation.