Does the Punch King Fitness Franchise Agreement include a Site Selection Addendum as an exhibit?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
EXHIBIT 2. SITE AND TERRITORY
EXHIBIT 3. AUTHORIZATION FOR ELECTRONIC TRANSFER OF FUNDS
EXHIBIT 4. SITE SELECTION ADDENDUM
EXHIBIT 5. RIDER TO FRANCHISE PREMISES LEASE AGREEMENT
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, the Franchise Agreement does include a Site Selection Addendum as an exhibit. Specifically, Exhibit 4 to the Punch King Fitness Franchise Agreement is the Site Selection Addendum. This addendum supplements the terms of the Franchise Agreement, indicating that site selection is a crucial and formally documented part of the franchising process.
This means that prospective Punch King Fitness franchisees will be required to adhere to the terms outlined in the Site Selection Addendum, in addition to the standard Franchise Agreement. The addendum likely contains specific obligations, timelines, and criteria related to securing an appropriate location for the franchised business. Franchisees should carefully review this addendum to understand their responsibilities and the franchisor's expectations regarding site selection.
The FDD also mentions a Site and Territory exhibit, which is Exhibit 2. Furthermore, the Franchise Agreement requires the franchisee to acquire or lease a location within a defined Site Selection Territory within one month of signing the agreement. The franchisor retains approval rights over the site and any lease agreements, ensuring that the location meets their standards and operational requirements. Failure to secure an approved site within the Site Selection Period constitutes a default of the Franchise Agreement and the Site Selection Addendum.
Overall, the inclusion of a Site Selection Addendum as an exhibit to the Punch King Fitness Franchise Agreement underscores the importance of location in the success of the franchise. It also highlights the franchisor's active role in the site selection process, from defining the territory to approving the final location and lease terms. Prospective franchisees should pay close attention to the terms of this addendum and work closely with Punch King Fitness to ensure they meet all requirements and deadlines.