Is a Punch King Fitness franchisee required to fully participate in promotional programs?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
material (Section XV of the Franchise Agreement).
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- We provide recommended and suggested pricing for the Franchised Business products and services. You must fully participate, honor, and comply with any and all System, local, regional, seasonal, promotional, and other programs, initiatives, and campaigns adopted by us that we require you to participate in (Section VI of the Franchise Agreement). You honor all and only the currency, credit, charge, courtesy, and cash cards approved by Franchisor in writing (Franchise Agreement VI(D))
- We approve any replacement Designated Manager of your Franchised Business. We do not select or hire your employees. (Section VIII of the Franchise Agreement).
Advertising.
We will provide marketing consultation, general advertising strategy, promotional planning, and budgeting at your request. We are not obligated to conduct advertising or spend any money on advertising in your Territory or area except as provided below. We are not obligated to conduct local, regional, or national advertising except as provided below.
Your Advertising.
You must submit to us for our prior approval samples of all advertising and promotional plans, materials, and other materials displaying the Marks. We will provide you with written approval or disapproval in 15 days. You may not use your advertising materials or materials that bear the Marks unless you have received our prior written approval. We have the right to use and have ownership of any Franchisee developed advertising.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–35)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees must fully participate in promotional programs. Specifically, Punch King Fitness franchisees are required to comply with any System, local, regional, seasonal, promotional, and other programs, initiatives, and campaigns adopted by the franchisor.
This obligation extends to gift cards and loyalty programs, as franchisees must participate in all gift certificate, loyalty programs, and gift card administration programs designated by Punch King Fitness. Franchisees must honor all coupons, gift certificates, loyalty promotions, gift cards, and other promotions directed by the franchisor. They must also fully participate in all guest loyalty, consumer relations management programs (CRM), or frequent customer programs adopted or approved by Punch King Fitness.
Furthermore, franchisees are restricted from creating, honoring, accepting, or issuing any gift certificates or gift cards not issued or approved by Punch King Fitness. Similarly, franchisees cannot issue, honor, or accept any coupons or discounts unless approved in writing by the franchisor. This ensures that all promotional activities are aligned with the brand's overall strategy and standards.
In addition to mandatory participation in franchisor-led programs, Punch King Fitness franchisees are also expected to engage in local advertising to promote their franchised business. While the FDD suggests spending $100 per month on local advertising, the franchisee is responsible for expending sufficient resources to promote their Punch King Fitness location within their local area.