What is the Punch King Fitness franchisee's obligation regarding the location of the Site for the Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1. Within 1 month after the execution of the Franchise Agreement (the Site Selection Period), Franchisee shall acquire or lease, at Franchisee's expense, a location for the Punch King Fitness Franchised Business franchised under the Franchise Agreement (the Franchised Business) at a site approved by Franchisor as hereinafter provided.
Such location shall be within the following area: ________________________________ (the Site Selection Territory).
The Site Selection Territory is described solely for the purpose of selecting a site for the Franchised Business.
2. Franchisor shall not establish nor license another to establish; a Punch King Fitness Franchised Business within the Site Selection Territory until Franchisor approves of a location for the Franchised Business or until the expiration of the Site Selection Period, whichever event occurs first.
3. Failure by Franchisee to acquire or lease a site for the Franchised Business within the Site Selection Period shall constitute a default of the Franchise Agreement and this Site Selection Addendum.
4. If Franchisee occupies the Site of the Franchised Business under a lease or sublease, Franchisee shall, prior to the execution thereof, submit such lease to Franchisor for its written approval.
Franchisor's approval of the lease or sublease may be conditioned upon the inclusion of such provisions as Franchisor may reasonably require, including, without limitation:
(a) A provision that restricts the use of the Site solely to the operation of the Franchised Business;
(b) The lessor will consent to Franchisee's use of such Marks and signage as Franchisor may prescribe for the Franchised Business;
EXHIBIT 2. SITE AND TERRITORY
TO THE PUNCH KING FITNESS FRANCHISE AGREEMENT
- The address and/or description of the Site for the Franchised Business shall be: 2. The Territory referenced in the Franchise Agreement shall consist of the following geographical area in the State of: Franchisor and Franchisee further agree that this Exhibit shall be attached to, incorporated in, and made a part of said Franchise Agreement between Franchisor and Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the franchisee is responsible for securing a location for their Franchised Business. Within one month of signing the Franchise Agreement, the franchisee must either acquire or lease a site, at their own expense, that is approved by Punch King Fitness. This location must be within a designated Site Selection Territory. The Site Selection Territory is defined solely for the purpose of selecting a site for the Franchised Business. Punch King Fitness will not establish or license another franchise within this territory until a location is approved or the Site Selection Period expires.
Failure to secure a site within the one-month Site Selection Period constitutes a default of the Franchise Agreement. If the franchisee leases the site, the lease must be submitted to Punch King Fitness for written approval before execution. Punch King Fitness's approval may depend on specific provisions in the lease, such as restricting the site's use solely to the Franchised Business and ensuring the lessor consents to the franchisee's use of Punch King Fitness's marks and signage.
Exhibit 2 of the Franchise Agreement requires the franchisee to specify the address or description of the site for the Franchised Business. It also requires the franchisee to define the territory referenced in the Franchise Agreement, including the geographical area within the state. This exhibit is attached to and made part of the Franchise Agreement, solidifying the agreement between Punch King Fitness and the franchisee regarding the site and territory.