What is the cure period for a Punch King Fitness franchisee to remedy a breach of the Franchise Agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 22. Franchisee fails to perform or breaches any other provision of this Agreement or of any other agreement or instrument between Franchisor, Franchisor's affiliates, or a Punch King Fitness designated supplier and Franchisee and fails to cure any such breach within thirty (30) days from notice of breach or if any agreement by and between the Franchisee or its affiliates and Franchisors or its affiliates or a Punch King Fitness designated supplier is terminated by reason of Franchisee's, Franchisee's affiliate(s)', or Franchisees Principal Owner(s)' default, irrespective of such default was in part or in whole directly or indirectly the reason for termination.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, a franchisee typically has 30 days to cure a breach of the Franchise Agreement after receiving notice from the franchisor. This applies to breaches of the agreement itself or any other agreement between the franchisee and Punch King Fitness, its affiliates, or a designated supplier.
However, there are exceptions to this 30-day cure period. For instance, if a franchisee is more than ten days late on any payment due to Punch King Fitness or an approved vendor, it constitutes a breach. Similarly, failure to participate in a promotional campaign within five days of notice also constitutes a breach. Additionally, if a franchisee knowingly maintains false records or underreports gross revenues by more than 5% in any 180-day period, it is considered a breach of contract.
Furthermore, if the breach involves a threat or danger to public health or safety resulting from the construction, maintenance, or operation of the franchised business, the franchisee must immediately commence actions to cure the problem. The agreement specifies that failure to promptly address such issues constitutes a breach. It is important for prospective franchisees to understand these specific conditions and ensure they can comply with the required timelines to avoid potential termination of their franchise agreement.