What is the condition for the Landlord to consent to the assignment of the Lease to Punch King Fitness?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4. If Franchisee occupies the Site of the Franchised Business under a lease or sublease, Franchisee shall, prior to the execution thereof, submit such lease to Franchisor for its written approval.
Franchisor's approval of the lease or sublease may be conditioned upon the inclusion of such provisions as Franchisor may reasonably require, including, without limitation:
(a) A provision that restricts the use of the Site solely to the operation of the Franchised Business;
(b) The lessor will consent to Franchisee's use of such Marks and signage as Franchisor may prescribe for the Franchised Business;
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
Based on the 2024 Punch King Fitness Franchise Disclosure Document, if a franchisee occupies the site of the franchised business under a lease or sublease, the franchisee must submit the lease to Punch King Fitness for written approval before execution. Punch King Fitness's approval of the lease or sublease may be conditioned upon the inclusion of provisions that Punch King Fitness may reasonably require.
These provisions may include restricting the site's use solely to operating the franchised business. Additionally, the lessor must consent to the franchisee's use of such marks and signage as Punch King Fitness may prescribe for the franchised business.
This means that a prospective Punch King Fitness franchisee needs to get the lease agreement approved by Punch King Fitness before signing it. Punch King Fitness has the right to require certain provisions in the lease to protect its brand and ensure the site is used only for the Punch King Fitness business.