What is the definition of 'Site' in the Punch King Fitness franchise agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1. Within 1 month after the execution of the Franchise Agreement (the Site Selection Period), Franchisee shall acquire or lease, at Franchisee's expense, a location for the Punch King Fitness Franchised Business franchised under the Franchise Agreement (the Franchised Business) at a site approved by Franchisor as hereinafter provided.
Such location shall be within the following area: ________________________________ (the Site Selection Territory).
The Site Selection Territory is described solely for the purpose of selecting a site for the Franchised Business.
2. Franchisor shall not establish nor license another to establish; a Punch King Fitness Franchised Business within the Site Selection Territory until Franchisor approves of a location for the Franchised Business or until the expiration of the Site Selection Period, whichever event occurs first.
3. Failure by Franchisee to acquire or lease a site for the Franchised Business within the Site Selection Period shall constitute a default of the Franchise Agreement and this Site Selection Addendum.
4. If Franchisee occupies the Site of the Franchised Business under a lease or sublease, Franchisee shall, prior to the execution thereof, submit such lease to Franchisor for its written approval.
Franchisor's approval of the lease or sublease may be conditioned upon the inclusion of such provisions as Franchisor may reasonably require, including, without limitation:
(a) A provision that restricts the use of the Site solely to the operation of the Franchised Business;
(b) The lessor will consent to Franchisee's use of such Marks and signage as Franchisor may prescribe for the Franchised Business;
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the term 'Site' refers to the physical location where the Punch King Fitness Franchised Business will operate. Within one month after signing the Franchise Agreement, the franchisee must find a location for their Punch King Fitness business, and this location must be approved by Punch King Fitness. This location must be within a defined 'Site Selection Territory'.
The Punch King Fitness franchisee is responsible for acquiring or leasing the site at their own expense. If the franchisee fails to secure a site within the Site Selection Period, it is considered a default of the Franchise Agreement and the Site Selection Addendum. If the site is occupied under a lease or sublease, the franchisee must submit the lease to Punch King Fitness for written approval before signing it.
Punch King Fitness's approval of the lease may depend on certain conditions, such as restricting the site's use solely to the operation of the Franchised Business and ensuring the lessor consents to the franchisee's use of Punch King Fitness's marks and signage. This ensures that the location is suitable for the Punch King Fitness business and aligns with the brand's standards and requirements.