Is a Punch King Fitness Cooperative intended to be of perpetual duration?

According to Punch King Fitness's 2024 Franchise Disclosure Document, Cooperatives established by Punch King Fitness are intended to be of perpetual duration. However, Punch King Fitness retains the right to modify, merge, or dissolve any Cooperative.

This means that while the initial intention is for these cooperatives to exist indefinitely, Punch King Fitness has the authority to change this. This could be a risk for franchisees who are relying on the long-term benefits of a cooperative for advertising and promotional activities.

If a Cooperative is dissolved, Punch King Fitness will use any unexpended monies from the dissolved Cooperative only for advertising or promotional purposes for the Punch King Fitness system. This provides some assurance that the funds will continue to benefit the brand, but franchisees should be aware that they may not directly benefit from those funds in their specific location if their Cooperative is dissolved. Prospective franchisees should seek clarification from Punch King Fitness regarding the conditions under which a Cooperative might be modified, merged, or dissolved, and how these actions could impact their franchise.