What is the latest point at which pre-opening expenses are due for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
AL INVESTMENT
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM | |
|---|---|---|---|---|---|
| PAYMENT IS MADE | |||||
| Initial Franchise Fee1 | $50,000 | Lump-sum via Check or Wire | Upon Signing the Franchise Agreement | Us | |
| Lease |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–22)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, pre-opening expenses, which range from $3,000 to $5,000, are due before beginning operations. These expenses are paid to Punch King Fitness and/or its suppliers.
These pre-opening expenses cover costs like pre-opening payroll, cleaning and preparation, telephone and other communication expenses, and electricity. The FDD indicates that these monies are typically non-refundable.
As a prospective franchisee, it's important to factor in these pre-opening expenses and understand that they must be paid before the Punch King Fitness location can begin operations. Given that these expenses are typically non-refundable, careful planning and budgeting are essential to mitigate financial risks during the initial phase of the business.