Will Punch King Fitness change the size of my Development Area?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We otherwise will not change the size of your Development Area.
You will not receive an exclusive Area Development territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
If you sign an Area Development Agreement, your rights to the Development Area will be protected as outlined in the Area Development Agreement. The Development Area Territory is typically a geographic area encompassing a population of 100,000 persons for each additional franchise territory under the Area Development Agreement but may be smaller depending on the market area for each additional Franchised Business. The Development Area Territory is determined as mutually agreed upon by you and us and outlined in the Area Development Agreement when signing the Area Development Agreement.
We reserve the right to own, acquire, establish and operate, and license others to establish and operate businesses like the Franchised Business or substantially similar to the Franchised Business, whether under the Marks or other proprietary marks, outside the Development Area; acquire a system of Competitive Businesses with units located within your Development Area or outside the Development Area; sell the services and products authorized for Punch King Fitness Franchised Business using the Marks or other trademarks, service marks and commercial symbols through alternate channels of distribution, venues; site or location models other than the Model Concept of your Franchised Business, including such as a storefront, brick, and mortar, co-branded, pop-up, virtual, or mobile outlets; joint marketing with partner companies; direct mail; catalog sales; internet sites; and co-branding strategies, pursuant to such terms and conditions as Franchisor deems appropriate; advertise, promote, market or sell goods or services using the Punch King Fitness Marks over the internet, the World Wide Web or any other electronic network; offer and sell the services and products authorized for Franchised Business using the Punch King Fitness Marks or other trademarks, service marks and commercial symbols to Special Accounts; .
We reserve the right to limit your Territory as follows:
Own, acquire, establish, operate, and license others to establish and operate businesses like the Franchised Business or substantially similar to the Franchised Business, whether under the Marks or other proprietary marks outside the Territory.
Acquire a system of Competitive Businesses with units located within your Territory or outside the Territory.
Establish or license another to establish a Punch King Fitness Model Concept, such as, for example only, storefront, brick and mortar, co-branded, pop-up, virtual, or mobile outlets that are different than your Model Concept within or outside the Territory under the Punch King Fitness Marks or other marks, trademarks, or services.
Source: Item 12 — TERRITORY (FDD pages 35–38)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the franchisor states that it will not change the size of your Development Area, provided you adhere to the Development Schedule. However, Punch King Fitness does not offer exclusive Area Development territories, meaning franchisees may face competition from other franchisees, outlets owned by Punch King Fitness, or other competitive brands.
The Development Area Territory typically encompasses a geographic area with a population of 100,000 persons for each additional franchise territory under the Area Development Agreement. However, the FDD states that this may be smaller depending on the market area for each additional Franchised Business. The specific Development Area Territory is determined and mutually agreed upon by the franchisee and Punch King Fitness, and is outlined in the Area Development Agreement when signing.
It's important to note that Punch King Fitness reserves the right to operate or license others to operate businesses similar to the Franchised Business outside the Development Area. They can also acquire systems of Competitive Businesses with units inside or outside your Development Area. Additionally, Punch King Fitness can sell services and products through alternate channels of distribution, such as internet sales or co-branding strategies, and market goods over the internet. These activities could potentially impact a franchisee's business within their designated territory.
Furthermore, Punch King Fitness reserves the right to limit your Territory by establishing other Punch King Fitness Model Concepts, such as storefront, brick and mortar, co-branded, pop-up, virtual, or mobile outlets that are different than your Model Concept within or outside the Territory under the Punch King Fitness Marks or other marks, trademarks, or services.