factual

Are Punch King Fitness and its affiliates considered third-party beneficiaries of the franchise agreement?

Punch_King_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

I. No Third-Party Beneficiaries

Nothing in this Agreement is intended, nor shall be deemed, to confer any rights or remedies upon any person or entity not a party hereto.

Source: Item 22 — CONTRACTS (FDD pages 56–215)

What This Means (2024 FDD)

According to Punch King Fitness's 2024 Franchise Disclosure Document, the franchise agreement does not confer any rights or remedies to any third party. Specifically, the franchise agreement states that nothing in the agreement is intended, nor shall be deemed, to confer any rights or remedies upon any person or entity not a party to the agreement.

This means that entities or individuals who are not direct parties to the Punch King Fitness franchise agreement (i.e., the franchisee and Punch King Fitness itself) do not have the ability to enforce any provisions of the agreement or seek remedies for any breaches. This is a standard clause in franchise agreements to limit potential liabilities and ensure that only the direct parties involved can take legal action related to the agreement.

However, there is an exception regarding confidentiality agreements. Franchisees must ensure their personnel (principals, directors, officers, and managers) sign confidentiality agreements in a form approved by Punch King Fitness. These agreements must specifically identify Punch King Fitness as a third-party beneficiary, granting Punch King Fitness the independent right to enforce these confidentiality covenants. This ensures Punch King Fitness can protect its confidential information and trade secrets even if the breach is caused by someone associated with the franchisee rather than the franchisee directly.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.