What are the criteria Punch King Fitness uses for designating approved suppliers?

According to Punch King Fitness's 2024 Franchise Disclosure Document, the criteria for designating approved suppliers include a supplier's ability to meet quality standards, ensure availability, and maintain consistency of the products or services they provide. However, the FDD explicitly states that the specific criteria for designating and approving suppliers are not published and are not made available to franchisees. This means that while Punch King Fitness franchisees are required to purchase certain products and services from designated or approved suppliers, the exact standards used to evaluate and select these suppliers remain undisclosed.

This lack of transparency could pose a risk for prospective franchisees. Without knowing the specific criteria, it's difficult to assess whether the approved suppliers are truly the best option in terms of price, quality, and service. Franchisees are also unable to suggest or evaluate alternative suppliers themselves, as the criteria for approval are not shared. This restriction limits the franchisee's ability to control costs and potentially improve the quality of goods and services used in their Punch King Fitness business.

Notably, Punch King, LLC, an affiliate of Punch King Fitness in which certain officers have ownership interests, is the sole exclusive supplier of Punch King punching bags, training equipment, protective gear, flooring, and hanging rack systems. This arrangement raises potential conflicts of interest, as the officers could benefit financially from requiring franchisees to purchase from their affiliate, regardless of whether it's the most competitive option. Prospective franchisees should carefully consider these factors and conduct thorough due diligence before investing in a Punch King Fitness franchise. It would be prudent to inquire further about the supplier approval process and the rationale behind using affiliated suppliers.