What costs must a Punch King Fitness franchisee reimburse the franchisor for if they relocate?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You may relocate the Site of your Franchised Business so long the new Site meets our then-current Site requirements, and you reimburse us for any costs and expenses we incur in your relocation. Currently, for relocation and Site selection, the Site must be approved by us, and we provide building specifications for your real property space, we review your design plans, you must retain a licensed architect, and you must obtain a feasibility study prepared by a qualified third party. You are obligated to reimburse us for any cost and expense we incur reviewing or approving your relocation as a relocation fee.
Source: Item 12 — TERRITORY (FDD pages 35–38)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, a franchisee may relocate their franchised business location if the new site meets Punch King Fitness's current site requirements. If a franchisee chooses to relocate, they must reimburse Punch King Fitness for any costs and expenses that Punch King Fitness incurs during the relocation process.
These reimbursable costs are tied to Punch King Fitness's relocation and site selection procedures. The FDD states that the site must be approved by Punch King Fitness. As part of this approval process, Punch King Fitness provides building specifications for the real property space, reviews the franchisee's design plans, and requires the franchisee to retain a licensed architect and obtain a feasibility study from a qualified third party.
The franchisee is obligated to reimburse Punch King Fitness for any costs and expenses incurred while reviewing or approving the relocation as a relocation fee. This means that in addition to the direct costs of finding and preparing a new site, a Punch King Fitness franchisee must also be prepared to cover Punch King Fitness's internal costs for overseeing and approving the relocation.