Following termination, what must a Punch King Fitness franchisee cease using?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1. divert or attempt to divert any business or client of the Franchised Business or of any other franchisee of Franchisor to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or
- 2. own, maintain, engage in, or have any interest in any business offering boxing and kickboxing or any other products or services that are offered in the Franchised Business ("Competitive Business"), unless otherwise consented to in writing by Franchisor.
C. Covenants after Termination of Franchise Agreement
Franchisee further covenants that, except as otherwise approved in writing by Franchisor, Franchisee shall not, directly or indirectly, for itself or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation:
- 1. for a continuous and uninterrupted period commencing upon the expiration or termination of this Agreement (regardless of the cause for termination) and continuing for two (2) years thereafter, own, maintain, operate, engage in, or have any interest in any business offering boxing and kickboxing, or any other services that had been offered by the Franchised Business, within twenty-five (25) miles of any Punch King Fitness Franchised Business; or
- 2. for a continuous and uninterrupted period commencing upon the expiration or termination of this Agreement (regardless of the cause for termination) and continuing for two (2) years thereafter, directly or indirectly solicit or perform services for any person who was a client of the Franchised Business at any time during the term of this Agreement.
- 3. Franchisee and Franchisor agree that the covenants contained in this Section shall survive the expiration, termination, or cancellation of this Agreement. In the event of the violation of this Section by Franchisee following expiration, termination, or assignment of this Agreement, the period of time Franchisee shall be required to abide by the breached obligation shall be extended to a period of two (2)
years after Franchisee is no longer in breach of such obligation.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, a franchisee must cease using several elements of the Punch King Fitness system upon termination of the franchise agreement. Specifically, the franchisee is prohibited from actions that would be injurious to the goodwill associated with the Punch King Fitness marks and the system.
After the termination of the Franchise Agreement, the franchisee is restricted from engaging in or having any interest in a business offering boxing and kickboxing or other services offered by the franchised business within 25 miles of any Punch King Fitness location for two years. Additionally, the franchisee cannot solicit or perform services for anyone who was a client of the franchised business during the term of the agreement for a period of two years after termination.
Furthermore, the franchisee must maintain the confidentiality of the Punch King Fitness's trade secrets, including the operating manual, sales and marketing methods, pricing techniques, promotional materials, new product development, financial information, client lists, and procedures for efficient operation. These restrictions are designed to protect Punch King Fitness's brand and market position, and the franchisee acknowledges that violating these covenants would cause irreparable injury to Punch King Fitness.