What is the geographic limit for site selection for a Punch King Fitness franchise?

• 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;

Source: Item 22 — CONTRACTS (FDD pages 56–215)