Is a Punch King Fitness franchisee allowed to use telemarketing?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You may advertise, solicit, offer, accept orders, and sell within the Territory unless we give you written consent to serve another specified area where no other Punch King Fitness franchise or company-owned unit is located. If you are granted consent to service another specified area, you shall be obligated to pay us royalty fees and other fees for the services performed or products sold. You do not have the right to use other distribution channels such as the internet, catalog sales, telemarketing, or other direct marketing unless we give you written consent.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 41–42)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees are generally restricted from using telemarketing as a distribution channel. Specifically, a franchisee does not have the right to use telemarketing unless they obtain written consent from Punch King Fitness.
This restriction means that franchisees must primarily rely on other approved methods for advertising, soliciting, and selling Punch King Fitness products and services within their designated territory. If a franchisee wishes to expand their reach beyond their territory and use telemarketing, they must seek and receive explicit written permission from the franchisor.
If Punch King Fitness grants a franchisee the right to use telemarketing in another specified area, the franchisee becomes obligated to pay royalty fees and other fees to Punch King Fitness for the services performed or products sold through that channel. This ensures that the franchisor benefits from the franchisee's expanded activities. Prospective franchisees should discuss with Punch King Fitness what conditions or requirements might be placed on them to gain approval for telemarketing or other alternative distribution channels.