What happens if a Punch King Fitness franchisee fails to comply with applicable laws?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
roperty used in the Franchised Business that is not discharged within five (5) days of such levy.
- 18. Franchisee or any Principal violates the restrictive covenants of the confidentiality, solicitation, competition as set forth in this agreement or otherwise directly or indirectly uses or discloses Confidentiality Information to or for the benefit of it, his/her, or benefit of another or publishes causes to be published Confidential Information without the expressed written consent of Franchisor.
- 19. Any conduct or activity by Franchisee or any Designated Manager, Principal, director, or officer of Franchisee that Franchisor believes is reasonably likely to have an adverse effect or reflect unfavorably on the Franchised Business, Franchisor, the System, the Marks, or the goodwill associated therewith, including, but not limited to, any criminal misconduct for which Franchisee or any Designated Manager, Principal, director, or officer of Franchisee is convicted.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
The 2024 Punch King Fitness FDD does not explicitly state the consequences of failing to comply with applicable laws. However, it does state that any conduct or activity by a franchisee or their designated manager, principal, director, or officer that Punch King Fitness believes is reasonably likely to have an adverse effect or reflect unfavorably on the franchised business, Punch King Fitness, the system, the marks, or the goodwill associated with them, including any criminal misconduct for which the franchisee or any designated manager, principal, director, or officer of the franchisee is convicted, can be grounds for termination of the franchise agreement.
Additionally, the Rhode Island Addendum to the Franchise Disclosure Document states that any condition, stipulation, or provision requiring a franchisee to waive compliance with or relieving a person of a duty or liability imposed by the Rhode Island Franchise Investment Act or a rule or order under this act is void. A provision in a franchise agreement restricting jurisdiction or venue to a forum outside Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this act.
Prospective franchisees should inquire with Punch King Fitness about specific instances of non-compliance with laws and the potential ramifications, as well as consult with a legal professional to understand their rights and obligations under the franchise agreement and applicable laws.