What constitutes the 'Territory' for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Home Address: City: State: ZIP: Home Telephone: SSN: Percentage of Ownership: Home Address: City: State: ZIP: Home Telephone: SSN: Percentage of Ownership: Home Address: City: State: ZIP: Home Telephone: SSN: Percentage of Ownership: Home Address: City: State: ZIP: Home Telephone: SSN: term of the Franchise Agreement to which this Exhibit 1 is attached. Signature The undersigned individual Franchisee, or if Franchisee is other than an individual, each of the Principals of Franchisee, hereby certify that the foregoing information is accurate and complete to the best of their knowledge and agree to notify Franchisor promptly of any change in any such information during the Print Name Print Name Print Name Print Name
EXHIBIT 2. SITE AND TERRITORY
TO THE PUNCH KING FITNESS FRANCHISE AGREEMENT
- The address and/or description of the Site for the Franchised Business shall be: 2. The Territory referenced in the Franchise Agreement shall consist of the following geographical area in the State of: Franchisor and Franchisee further agree that this Exhibit shall be attached to, incorporated in, and made a part of said Franchise Agreement between Franchisor and Franchisee. IN WITNESS WHEREOF, the parties hereto have executed this Agreement or caused this Agreement to be executed by their duly authorized agents as of the date first written above. FRANCHISOR: PUNCH KING FITNESS, INC. INDIVIDUAL FRANCHISEE: INDIVIDUAL FRANCHISEE: Print Name Print Name Date: Date:
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, the specifics of a franchisee's territory are defined in Exhibit 2 of the Franchise Agreement. This exhibit includes a section where the geographical area constituting the territory is described.
However, Punch King Fitness retains several rights within and outside the franchisee's territory. These reserved rights include the ability to operate or license others to operate similar businesses outside the territory, acquire competitive businesses, establish alternative Punch King Fitness concepts (like co-branded or mobile outlets) within or outside the territory, and sell services/products through various channels such as the internet or direct mail.
Furthermore, Punch King Fitness is not obligated to prevent other franchisees from conducting operations within a franchisee's territory, although such activities are discouraged. The franchisor also reserves the right to modify the territory boundaries, and their decision on re-defining the boundaries is considered final and binding. A potential franchisee should carefully review Exhibit 2 and discuss territory specifics with Punch King Fitness to fully understand the scope and any potential limitations.