Can Punch King Fitness designate themselves as an approved supplier?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
For any product or service, we designate an approved supplier; you may not purchase these products and services from any other suppliers. We may designate new or different approved suppliers, including designating ourselves or one of our affiliates as an approved supplier of any goods or services.
Our parent, Punch King, LLC, is the sole exclusive supplier of Punch King Punching bags, training equipment, protective gear, flooring, and hanging rack systems to Punch King Fitness franchisees. We are not currently an approved supplier to our franchisees.
The criteria for designating approved suppliers include a supplier's ability to meet quality standards, availability, and consistency of the products or services. The criteria for designating and approving suppliers are not published and are not made available to franchisees. Franchisees may not contract with alternative suppliers for designated products or services.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–25)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, Punch King Fitness can designate themselves or one of their affiliates as an approved supplier of any goods or services. The FDD specifies that for any product or service where Punch King Fitness designates an approved supplier, franchisees must purchase those products and services exclusively from that designated supplier. Franchisees are not allowed to contract with alternative suppliers for designated products or services.
Currently, Punch King Fitness is not an approved supplier to its franchisees. However, Punch King, LLC, an affiliate of Punch King Fitness, is the sole exclusive supplier of Punch King punching bags, training equipment, protective gear, flooring, and hanging rack systems. King Lei, the CEO; Jeff Wallace, the Director of Operations; and Mauricio Mejia, the President of Punch King Fitness, all have ownership interests in Punch King, LLC.
The criteria Punch King Fitness uses for designating approved suppliers include the supplier's ability to meet quality standards, availability, and consistency of the products or services. However, these criteria are not published and are not made available to franchisees. This means that Punch King Fitness has the right to change or add approved suppliers at any time, and franchisees are bound to purchase from those designated suppliers.