What is the Covenantor's role in relation to the Franchisee for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
y has been delivered in the State of California and shall be construed and enforced in accordance with the laws thereof. Jurisdiction and venue in any action to enforce this Guaranty shall be in any state or federal court within the State of California in the judicial district where Franchisor has its principal place of business. Guarantors consent to the exercise of personal jurisdiction by any such court and waive any defense of lack of personal jurisdiction or improper venue.
| , Individually | GUARANTOR: | |----------------|------------| | , Individually | | | FRANCHISEE: | Signature Name: Title: | | Date: | |
RESTRICTIVE COVENANT AGREEMENT
TO THE PUNCH KING FITNESS FRANCHISE DISCLOSURE DOCUMENT
RESTRICTIVE COVENANT AGREEMENT
| THIS AGREEMENT, by and between, (Franchisee), | |
|---|---|
| a [corporation] [partnership] [limited liability company] organized under the laws of the State of | |
| , and (Covenantor), an individual | |
| resident of the State of, | |
| WITNESSETH: | |
| WHEREAS, pursuant to that certain Franchise Agreement dated (the Franchise | |
| Agreement), Punch King Fitness, Inc. (Franchisor) granted Franchisee a franchise to operate a Punch King | |
| Fitness Franchised Business (the Franchise), using Franchisor's unique franchise system and Franchisor's | |
| trade name and service mark Punch King Fitness | |
| and other proprietary marks; |
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the Covenantor is typically the owner (or spouse of the owner) of the Franchisee. The Covenantor's role is established through an agreement between the Franchisee and the Covenantor, where the Covenantor provides additional consideration and inducement for the grant of the franchise to the Franchisee.
The Covenantor agrees to protect the confidential information of Punch King Fitness, including the operating manual, sales and marketing methods, pricing techniques, promotional materials, new product development, and financial information. The Covenantor must use these trade secrets solely for the Franchisee's benefit and not disclose them to any other party during or after the term of the Franchise Agreement. The Covenantor also acknowledges Punch King Fitness's rights to its service marks and agrees not to infringe upon or contest the validity of these marks.
Furthermore, the Covenantor agrees to a non-competition covenant, which restricts them from engaging in any similar business offering boxing and kickboxing or related services within 25 miles of any Punch King Fitness franchise for two years after the termination or expiration of the Franchise Agreement. Violation of these covenants would result in irreparable injury to Punch King Fitness and the Franchisee, potentially leading to injunctions and the payment of court costs and attorney fees. These obligations and restrictions are intended to protect the Punch King Fitness system and brand.