Who administers the Punch King Fitness National Advertising Fund?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
lable for your review.
National Advertising Fund.
You are obligated to contribute up to 2% of Gross Revenues to the Punch King Fitness National Advertising Fund. Contributions to the Punch King Fitness National Advertising Fund may be used for in-house, national or regional agencies to maintain, administer, research, direct, and prepare advertising and/or promotional activities, including, without limitation, the costs of preparing and conducting advertising campaigns, which may be local, regional or national, in various media; direct mail and outdoor billboard advertising; marketing surveys and other public relations activities; employing advertising agencies to assist therein; product development; and developing and providing promotional and other marketing materials for franchisees in the System. We may be reimbursed for any labor or services we provide to the fund and for any costs we incur for or on behalf of the National Advertising Fund for any labor or services that we provide to the fund and for any costs that we incur for or on behalf of the National Advertising Fund. We may loan the National Advertising Fund additional funds if needed. For each company-owned location (if any), we will contribute to the National Advertising Fund on the same basis as assessments required of comparable franchises within the System. Franchisees who contribute to the fund may obtain a copy of the fund's unaudited financial statements after April 30th of each year upon your written request. Except as disclosed above, neither we nor any affiliate of ours will receive any payment from the fund. We do not use National Advertising Fund dollars to solicit new franchise sales. (Sections IV of the Franchise Agreement).
The National Advertising Fund is intended to maximize general public recognition and acceptance of the Marks for the benefit of all franchisees within the System or a region, as the case may be. In administering
the National Advertising Fund and making expenditures, we are not obligated or required to spend any amount of money in your Territory or ensure that you or any franchise benefits are equivalent or proportionate to the Punch King Fitness National Advertising Fund contributions.
The National Advertising Fund did not collect any contributions in 2023.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–35)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the franchisor administers the National Advertising Fund. Franchisees are obligated to contribute up to 2% of gross revenues to this fund. These contributions can be used for various advertising and promotional activities, including campaigns in different media, direct mail, billboard advertising, marketing surveys, public relations, and the development of marketing materials.
The franchisor may use in-house resources or national/regional agencies to manage the fund. They can also be reimbursed for labor, services, and costs incurred while administering the fund. The franchisor has the option to loan additional funds to the National Advertising Fund if needed. For company-owned locations, contributions to the fund will be made on the same basis as required from comparable franchises.
Franchisees who contribute to the National Advertising Fund can request a copy of the fund's unaudited financial statements after April 30th each year. The franchisor states that neither they nor their affiliates will receive payments from the fund, except as disclosed in the FDD, and that National Advertising Fund dollars are not used to solicit new franchise sales. The franchisor is not obligated to spend money in a franchisee's specific territory or ensure that the benefits are proportionate to the contributions made to the fund.