According to Punch King Fitness's 2024 Franchise Disclosure Document, a Covenantor is defined as an individual resident of a specific state who is also the owner (or spouse of the owner) of the Franchisee. This definition is crucial because the Covenantor is bound by certain agreements and covenants within the franchise agreement, particularly those related to confidentiality, proprietary marks, and non-competition. These covenants are conditions for Punch King Fitness granting the franchise to the Franchisee.

The Covenantor's obligations include maintaining the confidentiality of Punch King Fitness's operating manual, sales and marketing methods, pricing techniques, promotional materials, new product development, financial information, and procedures. The Covenantor must use these trade secrets solely for the Franchisee's benefit and cannot disclose them to any other party during or after the term of the Franchise Agreement. This ensures that sensitive business information remains protected and is not used to benefit competitors.

Additionally, the Covenantor acknowledges Punch King Fitness's rights to its service marks and agrees not to infringe upon or contest the validity of these marks. The Covenantor also agrees to a non-competition clause, which restricts them from engaging in any similar business within 25 miles of any Punch King Fitness franchise for a period of two years after the termination of the Franchise Agreement. This restriction aims to protect Punch King Fitness's market share and prevent former franchisees or their spouses from directly competing with the brand. The Covenantor's agreement to these terms is a significant factor in Punch King Fitness's decision to grant the franchise.