What is covered in Section III of the Punch King Fitness Area Development Agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ight to use the Marks; the rights to use the Marks are granted only by Franchise Agreements.
II. FEES
The total amount of the Development Fee is listed in Exhibit 2 (the "Development Fee"). The Development Fee will be applied toward the initial franchise fee due under subsequent Franchise Agreements in the manner specified in Exhibit 2. Developer will pay the balance of the initial franchise fee as so stipulated and due under the then Current Franchise Agreement for each Franchised Business at the time the Franchise Agreement for each Franchised Business is executed. The Development Fee will not be refundable, notwithstanding anything to the contrary in this Agreement or any Franchise Agreement.
III. DEVELOPMENT SCHEDULE
Developer must enter into Franchise Agreements and open and operate Punch King Fitness Franchised Business in accordance with the deadlines set forth in the Development Schedule.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, Section III of the Area Development Agreement outlines the development schedule that the developer (area franchisee) must adhere to. This schedule dictates the deadlines for entering into Franchise Agreements and opening Punch King Fitness Franchised Businesses.
The developer is required to submit an initial franchise fee and a signed copy of the then-current standard Franchise Agreement by each "Fee Deadline" specified in the Development Schedule. This submission must cover the number of Punch King Fitness Franchised Businesses also specified in the schedule. Furthermore, by each "Opening Deadline," the developer must have the specified number of Punch King Fitness Franchised Businesses open and operating.
The agreement stipulates that the developer must secure locations for the Punch King Fitness Franchised Businesses that have been accepted by Punch King Fitness in accordance with the terms of the applicable Franchise Agreement. This ensures that all locations meet the brand's standards and are suitable for operation.