What constitutes conduct that could adversely affect the Punch King Fitness brand?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19. Any conduct or activity by Franchisee or any Designated Manager, Principal, director, or officer of Franchisee that Franchisor believes is reasonably likely to have an adverse effect or reflect unfavorably on the Franchised Business, Franchisor, the System, the Marks, or the goodwill associated therewith, including, but not limited to, any criminal misconduct for which Franchisee or any Designated Manager, Principal, director, or officer of Franchisee is convicted.
- 20. Franchisee knowingly maintains false books or records or knowingly submits any false reports (including, but not limited to, the information provided as part of Franchisee's application for this franchise) to Franchisor or understates its Gross Revenues reported to Franchisor by more than five percent (5%) and any given 180-day period.
- 21. Any threat or danger to public health or safety resulting from the construction, maintenance, or operation of the Franchised Business, and Franchisee has not immediately commenced actions to cure the problem or has not promptly cured or corrected the problem or activity that gave rise to the threat or danger.
- 22. Franchisee fails to perform or breaches any other provision of this Agreement or of any other agreement or instrument between Franchisor, Franchisor's affiliates, or a Punch King Fitness designated supplier and Franchisee and fails to cure any such breach within thirty (30) days from notice of breach or if any agreement by and between the Franchisee or its affiliates and Franchisors or its affiliates or a Punch King Fitness designated supplier is terminated by reason of Franchisee's, Franchisee's affiliate(s)', or Franchisees Principal Owner(s)' default, irrespective of such default was in part or in whole directly or indirectly the reason for termination.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, certain actions by the franchisee or their representatives can be deemed detrimental to the brand. Specifically, any conduct or activity by the franchisee, a designated manager, principal, director, or officer that Punch King Fitness reasonably believes is likely to have an adverse effect or reflect unfavorably on the franchised business, Punch King Fitness itself, the system, the brand's trademarks, or the associated goodwill is prohibited. This includes, but is not limited to, any criminal misconduct for which the franchisee or their representatives are convicted.
Additionally, franchisees are prohibited from knowingly maintaining false books or records, submitting false reports to Punch King Fitness (including information provided during the franchise application), or understating gross revenues reported to Punch King Fitness by more than 5% in any 180-day period. Any threat or danger to public health or safety resulting from the construction, maintenance, or operation of the franchised business that is not immediately addressed also constitutes a breach.
Furthermore, failure to perform or breaching any provision of the Franchise Agreement or any other agreement between the franchisee and Punch King Fitness, its affiliates, or a designated supplier, without curing the breach within 30 days of notice, can also lead to termination. This includes situations where an agreement is terminated due to the franchisee's default, regardless of whether the default was directly or indirectly the reason for termination. These stipulations are in place to protect the Punch King Fitness brand and ensure consistent standards across all franchise locations.