What are Punch King Fitness franchisees required to comply with regarding the development and operation of their Franchised Businesses?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Specifications.
Every detail of Punch King Fitness Franchised Businesses is essential, not only to your Franchised Business but also to other Punch King Fitness franchisees and us, to develop and maintain high and uniform operating standards, to increase the demand for the products and services offered by all franchisees, to establish and maintain a reputation for uniform, efficient, high-quality products and services, and to protect the goodwill of all Punch King Fitness franchises. You agree to comply with Punch King Fitness uniform specifications, standards, operating procedures, and rules for the development and operation of your Punch King Fitness Franchised Businesses (collectively referred to as System Standards). System Standards are described in the Punch King Fitness Operating Manual and otherwise communicated to you. The Punch King Fitness System and Operating Manual are occasionally updated, supplemented, modified, and enhanced.
Punch King Fitness April 26, 2024 22 Current Specification.
1 TRAINING FACILITY Estimated Initial Investment range is the sum of the TRAINING FACILITY Estimated Initial Investment item 7 table above.
2 If you desire and qualify for more than one Territory, an Area Development Fee is $30,000 per an additional franchise. The upper range is for 5 additional franchises under an Area Development Agreement and the lower range is for 1 additional franchise. The Area Development Fee is considered fully earned and is nonrefundable.
Below is a listing of Punch King Fitness specifications and System Standards for the identified categories.
Insurance.
You must provide us with evidence of insurance in at least the minimum amounts and coverage as follows: General Liability in the amount of $1,000,000. The Franchisee shall maintain Workman's Compensation, Unemployment Compensation, disability insurance, social security, and other similar insurance coverage in such amounts as may now or hereafter be required by any applicable law.
Evidence of this insurance must be initially provided at least 10 days before you begin the operation of your Punch King Fitness Franchise Business. A renewal certificate must be provided no later than 10 days before the expiration date of each policy. Each required liability insurance policy must name us as an additional insured and provide that we will be given at least 30 days' notice before the policy's cancellation, modification, or amendment.
The site of the Franchise Business.
The site for a Punch King Fitness Training Facility Franchised Business is a real property space (the Site). We do not select the site for your Punch King Fitness Franchised Business. We approve the Site for your Franchised Business.
Supplies, Fixture, Equipment, Inventory.
All the equipment, supplies, fixtures, inventory, and products for your Franchised Business must comply with Punch King Fitness Standards and specifications.
Advertising**.**
You shall use, display, and publish the Punch King Fitness Marks per System Specifications. All your Punch King Fitness advertising in any medium must be conducted dignifiedly, accurately, and truthfully and conform to all applicable laws and regulations relating to consumer advertising and Punch King Fitness System Standards. You must submit to us and obtain our prior approval for all advertising, promotional plans, materials, and other materials displaying the Punch King Fitness Marks. You may not use your advertising materials unless we issue you written approval. Post submission to us, we shall, within fifteen (15) days, notify you of approval or disapproval of advertisements.
Computer System.
You must buy and use Microsoft Windows OS, Impact Wrap Software, and Hardware. PushPress Gym Mangement Software. You may not install or permit to be installed any devices, software, mobile, internet, and other applications, or other programs not approved by us for use with the Computer Systems. From time to time, we may develop or authorize others to develop proprietary software, mobile, internet, and other software programs for use in the Punch King Fitness System, which you may be required to purchase or license and use. You may be required to execute any license, sublicense, or maintenance agreement, install, and pay any applicable fees for maintenance, updates, upgrades, and support required by us or any other approved licensor or approved supplier of such proprietary software programs.
Gift Cards and Loyalty Programs.
You must participate in all gift certificates, loyalty programs, and gift card administration programs, as we may designate from time to time. You must honor all coupons, gift certificates, loyalty promotions, gift cards, and other programs or promotions we direct. You must fully participate in all guest loyalty, consumer relations management programs (CRM), or frequent customer programs now or in the future adopted or approved by us. You may not create, honor, accept, or issue any gift certificates or gift cards and may only sell gift certificates or cards that have been issued or approved by us. You must not issue, honor, or accept any coupons or discounts except as approved by us in writing.
Employee Uniforms.
Your Punch King Fitness employees and staff may be required to wear uniforms that conform to Punch King Fitness specifications, which are contained in the Punch King Fitness Operating Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–25)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees must adhere to specific System Standards for developing and operating their franchised businesses. These standards are designed to maintain uniformity and quality across all Punch King Fitness locations. The System Standards are detailed in the Punch King Fitness Operating Manual and other communications from the franchisor, and these may be updated periodically.
Specifically, franchisees must comply with insurance requirements, providing evidence of general liability insurance of at least $1,000,000, as well as maintaining workman's compensation, unemployment compensation, disability insurance, social security, and other legally required insurance coverage. Evidence of insurance must be provided 10 days before operation begins, with renewal certificates provided 10 days before policy expiration. Liability policies must name Punch King Fitness as an additional insured and provide 30 days' notice for cancellations or modifications.
The FDD also states that franchisees must use and display Punch King Fitness Marks in accordance with System Specifications, ensuring all advertising is dignified, accurate, and truthful, and compliant with advertising laws. All advertising materials require prior written approval from Punch King Fitness, which will be provided or denied within 15 days of submission. Franchisees are also required to purchase and use specific computer systems, including Microsoft Windows OS, Impact Wrap Software, Hardware, and PushPress Gym Management Software, and must use only approved software and applications.
Furthermore, Punch King Fitness franchisees must participate in all designated gift certificate, loyalty, and gift card programs, honoring all related promotions and programs directed by the franchisor. They must also participate in guest loyalty and customer relations management programs. Employee uniforms must conform to Punch King Fitness specifications outlined in the Operating Manual. Franchisees are required to purchase fitness and training equipment, as well as flooring, from designated or approved suppliers, with approximately 90% of initial purchases and 25% of ongoing costs expected to be from these sources. Punch King, LLC, an affiliate of Punch King Fitness, is the exclusive supplier of Punch King punching bags, training equipment, protective gear, flooring, and hanging rack systems. The franchisor may also designate new or different approved suppliers, including themselves or affiliates.