Who is entitled to receive a copy of the Punch King Fitness Cooperative's financial statements?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
arketing and advertising cooperative (Cooperative). Each Cooperative will be organized and governed in a manner approved by us in writing. If your Territory is within the geographic boundaries of a Region or Local Cooperate that we designate, you will be required to participate in the cooperative. The members of the Cooperative will determine the amount of the Cooperative Contribution, but the Cooperative Contribution may not exceed $100 per month. Within thirty days after the end of each calendar month, each Cooperative will prepare an unaudited statement of the Cooperative's financial position and the results of operations of the Cooperative. Each member of the Cooperative will be entitled to receive a copy of the Cooperative's financial statements upon request. For each Punch King Fitness business operated by us or our affiliates in a geographical area for which a Cooperative has been established, we will make a Cooperative Contribution on the same basis as assessments required of comparable franchises that are members of the same Cooperative. If outlets owned by us have the controlling voting power, Cooperative Contribution will not exceed $100 per month. You do not have the right to form, change, dissolve, or merge any Regional Advertising Cooperative. We shall administer the Regional Advertising Cooperative. There are currently no Regional Advertising Cooperativ
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–35)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, each member of a local or regional advertising cooperative is entitled to receive a copy of the cooperative's financial statements upon request. These cooperatives are established in geographical areas with at least two Punch King Fitness franchises and are governed in a manner approved by Punch King Fitness. Franchisees located within the boundaries of a designated cooperative are required to participate.
The financial statements provided to members are unaudited statements of the cooperative's financial position and results of operations. These statements are prepared within thirty days after the end of each calendar month, ensuring that members receive timely financial information. The cooperative determines the amount of the contribution, but it cannot exceed $100 per month.
Punch King Fitness also contributes to the cooperative for each of its company-owned locations within the cooperative's geographical area, on the same basis as required of comparable franchises. However, if Punch King Fitness-owned outlets have controlling voting power, the cooperative contribution will not exceed $100 per month. Franchisees do not have the right to form, change, dissolve, or merge any Regional Advertising Cooperative, as Punch King Fitness retains administrative control over these cooperatives. Currently, there are no Regional Advertising Cooperatives or governing documents available for review.