How many days of payment delinquency triggers a default for a Punch King Fitness franchisee?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
3. Franchisee is delinquent by more than ten (10) days in paying any sum due as required under this Agreement or any other agreement or instrument between Franchisor or Franchisor's affiliate and Franchisee.
4. Franchisee is late for more than 10 days on any payment due and owing to a Punch King Fitness approved or designated vendor or supplier.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, a franchisee is considered in default if they are delinquent by more than ten days in paying any sum due. This includes payments required under the Franchise Agreement or any other agreement between the franchisee and Punch King Fitness or its affiliates.
This delinquency can trigger serious consequences, potentially leading to termination of the franchise agreement. It's not just about payments to the franchisor; being late on payments to Punch King Fitness-approved vendors or suppliers for more than 10 days also constitutes a default.
This provision highlights the importance of maintaining timely payments in all financial dealings related to the Punch King Fitness franchise. Franchisees need to ensure they have systems in place to manage and make payments promptly to avoid risking their franchise agreement.