Does Punch King Fitness Franchisor contribute to the Cooperative for Franchised Businesses they operate?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8. For each Punch King Fitness Franchised Business operated by Franchisor or an affiliate of Franchisor in a geographical area for which a Cooperative has been established, Franchisor shall make a Cooperative Contribution on the same basis as assessments required of comparable franchises that are members of the same Cooperative.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, when Punch King Fitness or its affiliates operate a franchised business in an area with a Cooperative, they are required to contribute to the Cooperative. The contribution must be on the same basis as the assessments required of comparable franchisees who are members of the same Cooperative.
This means that Punch King Fitness, as the franchisor, participates financially in the regional advertising efforts when it operates a franchise location within a Cooperative's area. This ensures that the franchisor is aligned with the franchisees in promoting the Punch King Fitness brand at the local level.
It's important to note that Punch King Fitness maintains the right to modify, merge, or dissolve any Cooperative. If a Cooperative is dissolved, any unexpended funds must be used for advertising or promotional purposes for the Punch King Fitness system. This protects the franchisee's investment in the cooperative, as the funds will continue to benefit the brand. Franchisees should inquire about the specific terms and conditions of the Cooperative in their area, as well as the process for dissolving a Cooperative and how funds are distributed in such cases.