Does the Punch King Fitness Area Development Agreement include a development schedule?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ights to use the Marks are granted only by Franchise Agreements.
II. FEES
The total amount of the Development Fee is listed in Exhibit 2 (the "Development Fee"). The Development Fee will be applied toward the initial franchise fee due under subsequent Franchise Agreements in the manner specified in Exhibit 2. Developer will pay the balance of the initial franchise fee as so stipulated and due under the then Current Franchise Agreement for each Franchised Business at the time the Franchise Agreement for each Franchised Business is executed. The Development Fee will not be refundable, notwithstanding anything to the contrary in this Agreement or any Franchise Agreement.
III. DEVELOPMENT SCHEDULE
Developer must enter into Franchise Agreements and open and operate Punch King Fitness Franchised Business in accordance with the deadlines set forth in the Development Schedule. By each "Fee Deadline" specified in the Development Schedule, Developer must have delivered to Franchisor an initial franchise fee and a signed copy of Franchisor's then-current standard form of Franchise Agreement for the number of Punch King Fitness Franchised Businesses specified on the Development Schedule. By each "Opening Deadline" specified in the Development Schedule, Developer must have the specified number of Punch King Fitness Franchised Businesses open and operating. Developer must locate the
Punch King Fitness Franchised Businesses only at sites that Franchisor has accepted in accordance with the terms of the applicable Franchise Agreement.
IV. DEVELOPMENT AREA
**A.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the Area Development Agreement does include a development schedule. The document states that the developer must enter into Franchise Agreements and open and operate Punch King Fitness Franchised Businesses according to the deadlines set forth in the Development Schedule.
The Development Schedule specifies "Fee Deadlines," by which the developer must deliver an initial franchise fee and a signed copy of the Franchise Agreement for the number of Franchised Businesses specified in the schedule. It also specifies "Opening Deadlines," by which the developer must have the specified number of Punch King Fitness Franchised Businesses open and operating. The franchisor must also approve the sites for these businesses.
Furthermore, the FDD states that the Area Development Agreement expires on the last Opening Deadline date listed on the Development Schedule, unless terminated sooner. Failure to meet the deadlines in the Development Schedule constitutes an event of default, potentially leading to termination of the agreement. The development schedule included in the Area Development Agreement also states that the development fee is $30,000 per additional franchise, payable in two installments: half upon signing the Area Developer Agreement and half upon signing the franchise agreement for the additional territory. The developer agrees to establish and operate a total number of Punch King Fitness Franchised Businesses in accordance with the timetable set forth in the schedule, with the specific number of businesses to be determined.