What is the Punch King Fitness franchisee's responsibility regarding compliance with all requirements specified by Punch King Fitness for Outside Territory Activity?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee may not and is not granted the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory or operate using other Model Concepts unless we give you written consent to serve another specified area where no other Punch King Fitness franchise or company-owned unit is located. Franchisee acknowledges and agrees to obtain the prior written consent of Franchisor before advertising, offering, or selling beyond the aforementioned grant herein. If Franchisee is granted consent to service another specified area, Franchisee covenants and agrees to be obligated to pay royalty fees and other fees to Franchisor for the services performed or products sold.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, a franchisee is restricted from using alternative distribution channels like the internet, catalogs, telemarketing, or direct marketing to make sales outside their designated territory. They also cannot operate using other Model Concepts unless they receive explicit written consent from Punch King Fitness to serve a specific area where no other franchise or company-owned unit exists.
Before advertising, offering, or selling beyond their granted territory, a Punch King Fitness franchisee must obtain prior written consent from the franchisor. If consent is granted to service another area, the franchisee is obligated to pay royalty fees and other fees to Punch King Fitness for the services performed or products sold in that area.
Punch King Fitness retains specific rights not expressly granted to the franchisee, including the right to operate businesses similar to the franchised business outside the territory, acquire competitive businesses, establish alternative Punch King Fitness Model Concepts, and sell products/services through various channels. Punch King Fitness, its affiliates, or other franchisees/licensees can also advertise and sell goods/services using the Punch King Fitness marks over the Internet or any other electronic network.