How is the late fee calculated for overdue reports to Punch King Fitness?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5. Franchisee fails on two (2) or more separate occasions within any period of twelve (12) consecutive months to submit reports or other information or supporting records when due, Royalty Fees or other fees and payments when due to Franchisor or any Affiliate of Franchisor, or commits (3) defaults or more under this agreement or any other agreement with Franchisor or any Affiliate of Franchisor, whether or not such defaults or such failure to pay or submit information is corrected after notice thereof is delivered to Franchisee or after curing a default under this Agreement, Franchisee commits the same default again within six months of the default, even if Franchisee would otherwise be given an opportunity to cure the current default.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Punch King Fitness franchisees may face consequences for failing to submit reports or other required information on time. Specifically, if a franchisee fails to submit reports or other information when due on two or more separate occasions within any 12-month period, this constitutes a breach of the franchise agreement.
This failure to submit reports when due, even if corrected after notice, can lead to further action by Punch King Fitness. If the franchisee commits the same default again within six months of the initial failure, Punch King Fitness may take action, even if the franchisee would typically be given an opportunity to correct the current default.
However, the FDD excerpt does not specify the exact monetary amount or calculation method for late fees associated with overdue reports. For a prospective franchisee, this means understanding the reporting requirements and ensuring timely submission is crucial to avoid potential penalties or further action from Punch King Fitness. It would be prudent to seek clarification from the franchisor regarding the specific late fee structure and any associated consequences for repeated late submissions.