How long does Punch King Fitness have to approve or disapprove a proposed site after receiving the SAP?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor shall have thirty (30) days after receipt of the SAP from Franchisee to approve or disapprove, in its sole discretion, the proposed site for the Franchised Business.
In the event Franchisor does not approve a proposed site by written notice to Franchisee within said thirty (30) days, such site shall be deemed disapproved by Franchisor.
6. Franchisor shall furnish to Franchisee the following:
(a) For your Site, we provide building specifications for your real property space, we review your design plans, you must retain a licensed architect, and you must obtain a feasibility study prepared by a qualified third party;
(b) Such on-site evaluation as Franchisor may deem advisable in response to Franchisee's requests for site approval; provided, however, that Franchisor shall not provide on-site evaluation for any proposed site prior to the receipt of a completed SAP for such site prepared by Franchisee pursuant to this Addendum above.
If the on-site evaluation is deemed necessary and appropriate by Franchisor, Franchisor shall, at no charge to Franchisee, conduct: (a) up to two (2) on-site evaluations if the Franchised Business is the first Punch King Fitness Franchised Business to be developed by Franchisee, or (b) one (1) on-site evaluation if Franchisee has opened a Punch King Fitness Franchised Business prior to the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, after a franchisee submits a completed Site Approval Package (SAP), Punch King Fitness has 30 days to either approve or disapprove the proposed site. The SAP includes a site approval form, an option contract, a letter of intent, or other evidence satisfactory to Punch King Fitness, photographs of the site, demographic statistics, and any other information or materials that Punch King Fitness may reasonably require.
If Punch King Fitness does not provide written notice of approval or disapproval within this 30-day timeframe, the site is automatically considered disapproved. This strict timeline emphasizes the importance of franchisees submitting a comprehensive and well-prepared SAP to facilitate a timely review by Punch King Fitness.
Punch King Fitness may also conduct an on-site evaluation of the proposed location, at no charge to the franchisee. The number of evaluations depends on whether the franchisee has previously opened a Punch King Fitness franchise. For a first-time franchisee, Punch King Fitness will conduct up to two on-site evaluations, while for franchisees with existing locations, only one evaluation will be conducted. However, Punch King Fitness will not perform an on-site evaluation until it receives the completed SAP from the franchisee.