Is a Punch King Fitness franchisee allowed to use catalog sales?

According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees are generally restricted from using catalog sales as a distribution channel. Specifically, a Punch King Fitness franchisee does not have the right to use distribution channels like the internet, catalog sales, telemarketing, or other direct marketing to make sales outside of their territory.

However, a Punch King Fitness franchisee may be granted written consent to use these channels, including catalog sales, to serve another specified area where no other Punch King Fitness franchise or company-owned unit is located. If such consent is granted, the franchisee is obligated to pay royalty fees and other fees to Punch King Fitness for the services performed or products sold through these channels.

It is important to note that Punch King Fitness reserves the right to sell the services and products authorized for franchised businesses using the Punch King Fitness Marks through alternate channels of distribution, including catalog sales, under terms and conditions that Punch King Fitness deems appropriate. This means that while franchisees are restricted, Punch King Fitness itself can utilize catalog sales.

Therefore, a prospective Punch King Fitness franchisee should be aware that they cannot use catalog sales or similar channels without explicit written permission from Punch King Fitness and that Punch King Fitness retains the right to use these channels independently.