What is the definition of 'Outside Territory Activity' for a Punch King Fitness franchisee?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not offer or perform services or sell products other than to advertise, solicit, offer, accept orders, and sell within the Territory (referred to as Outside Territory Activity) without Franchisor's prior written consent, which Franchise may give and withdraw as Franchisor deems appropriate, and which may be conditioned as Franchisor sees necessary or desirable. If Franchisor permits Outside Territory Activity, Franchisee must comply with all of the conditions and other requirements that Franchisor may, from time to time, specify in the Brand Standards Manuals or otherwise in writing with respect to such activities. Franchisor may at any time condition Franchisee's continued Outside Territory Activity on Franchisee's agreement to purchase the franchise rights for the territory in which the Outside Territory Activity is being performed. At any time upon our demand or upon notice from Franchisor that the territory in question has been assigned to another Franchised Business or affiliate or assignee of Franchisor, Franchisee agrees to cease all Outside Territory Activity immediately and to comply with Franchisor's procedures for the transition of customer accounts for that territory. Under no circumstances will Franchisor be liable to Franchisee for violations by other Franchised Businesses of our policies on Outside Territory Activity.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, 'Outside Territory Activity' is defined as advertising, soliciting, offering, accepting orders, and selling services or products outside of the franchisee's designated territory.
A Punch King Fitness franchisee is not allowed to engage in 'Outside Territory Activity' without first obtaining written consent from the Franchisor. This consent can be given, withdrawn, or conditioned as the Franchisor deems appropriate. If the Franchisor allows 'Outside Territory Activity', the franchisee must adhere to all conditions and requirements specified in the Brand Standards Manuals or other written communications.
The Franchisor may require a franchisee engaging in 'Outside Territory Activity' to purchase the franchise rights for the territory where the activity is taking place. The franchisee must immediately cease all 'Outside Territory Activity' if the Franchisor demands it, or if the Franchisor notifies the franchisee that the territory in question has been assigned to another franchisee, affiliate, or assignee. The franchisee must also comply with the Franchisor's procedures for transitioning customer accounts in that territory. Punch King Fitness is not liable to the franchisee for violations of policies on 'Outside Territory Activity' by other franchisees.