What building specifications does Punch King Fitness provide for the franchisee's real property space?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
(h) A provision that restricts the lease from being modified in a manner that could materially affect Franchisor's rights with respect to the lease without Franchisor's prior written consent.
5. Within sixty (60) days after the execution of the Franchise Agreement, Franchisee shall submit to Franchisor, in a form specified by Franchisor, a completed site approval package, which shall include a site approval form prescribed by Franchisor, an option contract, a letter of intent, or other evidence satisfactory to Franchisor which describes Franchisee's favorable prospects for obtaining such site, photographs of the site, demographic statistics, and such other information or materials as Franchisor may reasonably require (collectively, the SAP).
Franchisee acknowledges that time is of the essence.
Franchisor shall have thirty (30) days after receipt of the SAP from Franchisee to approve or disapprove, in its sole discretion, the proposed site for the Franchised Business.
In the event Franchisor does not approve a proposed site by written notice to Franchisee within said thirty (30) days, such site shall be deemed disapproved by Franchisor.
6. Franchisor shall furnish to Franchisee the following:
(a) For your Site, we provide building specifications for your real property space, we review your design plans, you must retain a licensed architect, and you must obtain a feasibility study prepared by a qualified third party;
(b) Such on-site evaluation as Franchisor may deem advisable in response to Franchisee's requests for site approval; provided, however, that Franchisor shall not provide on-site evaluation for any proposed site prior to the receipt of a completed SAP for such site prepared by Franchisee pursuant to this Addendum above.
If the on-site evaluation is deemed necessary and appropriate by Franchisor, Franchisor shall, at no charge to Franchisee, conduct: (a) up to two (2) on-site evaluations if the Franchised Business is the first Punch King Fitness Franchised Business to be developed by Franchisee, or (b) one (1) on-site evaluation if Franchisee has opened a Punch King Fitness Franchised Business prior to the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, Punch King Fitness provides building specifications for the franchisee's real property space. The franchisee is required to retain a licensed architect and obtain a feasibility study prepared by a qualified third party.
Within 60 days of executing the Franchise Agreement, the franchisee must submit a completed site approval package (SAP) to Punch King Fitness in a specified form. The SAP should include a site approval form, an option contract, a letter of intent, or other satisfactory evidence describing the franchisee's prospects for securing the site. Additionally, the SAP must contain photographs of the site, demographic statistics, and any other information or materials reasonably required by Punch King Fitness. Time is of the essence in this process.
Punch King Fitness has 30 days after receiving the SAP to either approve or disapprove the proposed site. If Punch King Fitness fails to provide written notice of approval or disapproval within this 30-day period, the site is deemed disapproved. Punch King Fitness may also conduct on-site evaluations in response to the franchisee's requests for site approval, but only after receiving a completed SAP. Punch King Fitness will conduct up to two on-site evaluations at no charge if it is the franchisee's first Punch King Fitness location, or one on-site evaluation if the franchisee has previously opened a Punch King Fitness franchise.
The lease agreement must include a provision that restricts modifications that could materially affect Punch King Fitness's rights without their prior written consent. This ensures that the franchisor's interests are protected and that the franchisee adheres to the established standards and specifications for the Punch King Fitness business.