After entering into a Punch King Fitness franchise agreement, can a franchisee settle claims?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor disclaims all express and implied warranties and all other liability concerning any defects, malfunctions, or other deficiencies in services, inventory, fixtures, equipment, or other products and services manufactured by and/or rendered either directly or indirectly by anyone other than Franchisor or its affiliates. Franchisee agrees not to make any claims against Franchisor or its affiliates with respect to products or services that Franchisor and its affiliates did not manufacture or render, even if Franchisor or its affiliate sold the product or designated or approved its source. Franchisee is required to assert any claims only against the manufacturer or vendor of the product or service, even if Franchise obtained it through Franchisor or its affiliate.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Punch King Fitness franchisees are limited in their ability to make claims against the franchisor regarding products or services not directly manufactured or rendered by Punch King Fitness or its affiliates. Franchisees must pursue claims against the manufacturer or vendor, even if the product or service was obtained through Punch King Fitness. This means a franchisee cannot seek compensation from Punch King Fitness for issues arising from third-party products or services.
This requirement protects Punch King Fitness from liability for products or services they do not directly control. However, it places the responsibility on the franchisee to manage relationships with and seek recourse from other vendors. This could involve additional time and legal complexities for the franchisee.
For a prospective franchisee, this underscores the importance of carefully vetting all vendors and understanding the terms of service or product warranties. It also highlights the need to maintain thorough records and documentation related to any issues with third-party products or services used in the Punch King Fitness business. Franchisees should clarify with Punch King Fitness the approved vendor list and the due diligence performed on those vendors before entering into any agreements.