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A48/100FDD 2025

Basecamp Fitness — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
48 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
12
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$5.5M
Avg loan size
$457K
Participating lenders
8

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 48/100 rating

Risk Score Breakdown

  1. 01HIGHLitigation involving affiliate (The Bar Method) for unregistered franchise sales in Illinois and New York raises regulatory compliance concerns and potential parent company culpability
  2. 02MEDNet income not disclosed in FDD despite $531,192 average revenue — inability to assess actual profitability or sustainability of unit economics
  3. 03MEDModest unit growth of 18.8% YoY with only 23 total units suggests limited brand traction and potential saturation risk in small franchisee pool
  4. 04MINORHigh initial investment range ($513K–$832K) with 8% royalty creates significant breakeven burden if average revenue doesn't scale consistently
  5. 05MINOR6-year term is shorter than industry standard (10 years), increasing renewal uncertainty and reducing franchisee long-term security

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.