Does the Punch King Fitness FDD include an exhibit outlining restrictive covenants?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| RETURN TO | : Punch King F | itness, Inc. at 1588 Norieg | a St., San Frar | nciso, CA 94122 |
|---|---|---|---|---|
| Date | Signature | Print Name | ||
| Date | Signature | Print Name | ||
| EXHIBIT F. | CHISE REGULATORS AND R SERVICE OF PROCESS | |||
| EXHIBIT E. | IBIT E. POWER OF ATTORNEY TO ASSIGN TELEPHONE NUMBER | STATE SPECIFIC ADDENDUMS | ||
| EXHIBIT E. | AGREEMENT | - | EXHIBIT J. | TABLES OF CONTENTS OF OPERATING MANUAL |
| EXHIBIT D. | RESTRICTIVI | E COVENANT | EXHIBIT I. | FINANCIAL STATEMENTS |
Source: Item 23 — RECEIPT (FDD pages 215–216)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, Exhibit D includes restrictive covenants. This is important for potential franchisees as restrictive covenants, often called non-compete agreements, can significantly limit a franchisee's business activities both during and after the franchise term.
The presence of a restrictive covenant exhibit means that Punch King Fitness franchisees will likely be bound by terms preventing them from engaging in similar business activities within a certain geographic area or for a specific period after leaving the franchise system. These covenants are designed to protect the Punch King Fitness brand and market share by preventing former franchisees from using confidential information or competing directly with the franchise.
Prospective franchisees should carefully review Exhibit D to understand the specific restrictions, including the duration, geographic scope, and types of activities prohibited. Understanding these limitations is crucial for evaluating the long-term business prospects and potential exit strategies for a Punch King Fitness franchise. It is advisable to seek legal counsel to fully understand the implications of these covenants before signing the franchise agreement.