Where might the conditions for Outside Territory Activity be specified for a Punch King Fitness franchisee?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee may not and is not granted the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory or operate using other Model Concepts unless we give you written consent to serve another specified area where no other Punch King Fitness franchise or company-owned unit is located. Franchisee acknowledges and agrees to obtain the prior written consent of Franchisor before advertising, offering, or selling beyond the aforementioned grant herein. If Franchisee is granted consent to service another specified area, Franchisee covenants and agrees to be obligated to pay royalty fees and other fees to Franchisor for the services performed or products sold.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the conditions for outside territory activity are specified within Item 22, which covers the contracts related to the franchise agreement. Specifically, it outlines the franchisee's limitations regarding sales and operations outside of their designated territory.
The document states that a Punch King Fitness franchisee is generally restricted from using other distribution channels, such as the internet or direct marketing, to make sales outside their territory. They also cannot operate using other model concepts without written consent from the franchisor. If a franchisee wishes to engage in activities beyond their territory, they must obtain prior written consent from Punch King Fitness.
If Punch King Fitness grants consent for a franchisee to service another specified area, the franchisee is obligated to pay royalty fees and other fees to the franchisor for the services performed or products sold in that area. This ensures that Punch King Fitness receives compensation for the expanded operations of the franchisee beyond their initially assigned territory. The franchisor also reserves specific rights, including the right to operate businesses similar to the franchised business outside the franchisee's territory.