According to the 2024 Punch King Fitness Franchise Disclosure Document, Section I of the Area Development Agreement pertains to the grant of development rights and the defined development area. Specifically, Punch King Fitness grants the developer the right, and the developer undertakes the obligation, to establish and operate a specified number of Franchised Businesses within the area designated in Exhibit 1 of the agreement, known as the "Development Area." The number of Franchised Businesses is detailed in the development schedule found in Exhibit 2.

It is important to note that this section of the agreement does not grant the developer any rights to use the Punch King Fitness Marks. The right to use the Marks is exclusively granted through the Franchise Agreements, which are separate from the Area Development Agreement. This distinction clarifies that the Area Development Agreement primarily focuses on the developer's right and obligation to develop a certain number of locations within a specific area, while the Franchise Agreement governs the operational aspects and branding rights of each individual Punch King Fitness location.

For a prospective Punch King Fitness area developer, this means that while the Area Development Agreement secures the exclusive right to develop within a certain territory, the actual operation of each franchise unit is governed by a separate Franchise Agreement. Therefore, developers must carefully review both agreements to fully understand their rights and obligations. Understanding the interplay between these two agreements is crucial for the successful execution of the development plan and the operation of individual Punch King Fitness franchises.