What is the definition of 'Territory' in the Punch King Fitness franchise agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT 2. SITE AND TERRITORY
TO THE PUNCH KING FITNESS FRANCHISE AGREEMENT
- The address and/or description of the Site for the Franchised Business shall be: 2. The Territory referenced in the Franchise Agreement shall consist of the following geographical area in the State of: Franchisor and Franchisee further agree that this Exhibit shall be attached to, incorporated in, and made a part of said Franchise Agreement between Franchisor and Franchisee. IN WITNESS WHEREOF, the parties hereto have executed this Agreement or caused this Agreement to be executed by their duly authorized agents as of the date first written above. FRANCHISOR: PUNCH KING FITNESS, INC. INDIVIDUAL FRANCHISEE: INDIVIDUAL FRANCHISEE: Print Name Print Name Date: Date:
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, Exhibit 2 outlines details regarding the site and territory. Specifically, it mentions that the territory referenced in the Franchise Agreement will consist of a geographical area within a particular state. The exact boundaries of this territory are not pre-defined in the FDD but are instead agreed upon between Punch King Fitness and the franchisee, and documented in Exhibit 2 of the Franchise Agreement.
This exhibit is attached to and incorporated into the Franchise Agreement, making it a legally binding part of the contract. Both Punch King Fitness and the franchisee must sign the exhibit to acknowledge their agreement on the defined territory. This agreement confirms that both parties are clear on the geographical area in which the franchisee will operate.
Prospective franchisees should carefully review Exhibit 2, ensuring they understand the specific geographical boundaries of their territory before signing the Franchise Agreement. It is important to consider factors such as population density, competition, and growth potential within the territory. Franchisees should also clarify with Punch King Fitness any restrictions or limitations on their ability to market or operate outside of their designated territory.