Does the Punch King Fitness Franchise Agreement specify any obligations related to the termination of the franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
greement; or you | | | | or any of |
| Pro | ovision | Section in Franchise Agreement | Summary |
|---|---|---|---|
| your Principals violate any of the Covenants of the Franchisee, commit an infringement of the Proprietary Marks, or communicate, divulge, or use Confidential Information contrary to the Franchise Agreement. | |||
| i. | Your obligations on termination or nonrenewal | Article XX | Upon the termination, you must: cease to operate your Franchised Business and not hold itself out as a present or former Punch King Fitness franchisee of Franchisor; cease to use the Punch King Fitness System or Punch King Fitness Marks; make modifications to the Franchised Business Site to prevent the operation of any business on the Site that might be deemed substantially similar to the Punch King Fitness Franchised Business; at our option, assign to us (i) telephone numbers of the Franchised Business and all related Yellow Pages, White Pages, and other business listings, and (ii) Web Sites, web pages, listings, banners, URLs, advertisements, or any other services and links, and sell us the assets of the Franchised Business; turn over the Punch King Fitness Operating Manual, records, customer and other files, instructions, correspondence, and software provided and/or licensed by us; cancel any assumed name or equivalent registration that contains the Punch King Fitness Marks; pay all sums due and owing to us; obtain and maintain professional liability or errors and omissions insurance and general liability insurance for a period of time not less than the applicable statute of limitations in the jurisdiction in which the Franchised Business is located; appoint us as the true and lawful attorney-in-fact and agent for Franchisee to carry out Franchisee obligations under the terms of termination. |
| j. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–53)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the Franchise Agreement outlines specific obligations upon termination or non-renewal. As detailed in Article XX of the agreement, a franchisee must cease operating their Punch King Fitness franchise and discontinue using the Punch King Fitness System and Marks.
Furthermore, franchisees are required to modify the Franchised Business Site to prevent the operation of any business deemed substantially similar to Punch King Fitness. At the franchisor's option, the franchisee must assign telephone numbers, related Yellow Pages, White Pages, and other business listings, as well as websites, web pages, listings, banners, URLs, advertisements, or any other services and links to Punch King Fitness.
Additionally, Punch King Fitness has the option to purchase the assets of the Franchised Business from the franchisee. These obligations ensure that upon termination, the franchisee disassociates entirely from the Punch King Fitness brand and system, protecting the brand's integrity and preventing unfair competition. Punch King Fitness also retains the right to purchase the franchisee's assets at termination or expiration per Section XX (8) of the agreement, at their option to be exercised within thirty (30) days after termination, the franchisee must sell to them any or all of the furnishings, equipment, signs, fixtures, supplies, or inventory related to the operation of the Franchised Business, at the depreciated book value.