What is the meaning of 'Developer' in the context of the Punch King Fitness Area Development Agreement?

According to the 2024 Punch King Fitness Franchise Disclosure Document, a 'Developer' refers to an entity or individual who enters into an Area Development Agreement with Punch King Fitness. This agreement grants the Developer the right and obligation to establish and operate a specified number of Punch King Fitness Franchised Businesses within a defined geographical area, known as the 'Development Area', according to a predetermined schedule.

The Developer's responsibilities include securing locations for the Punch King Fitness franchises that meet the Franchisor's approval and adhering to the development schedule outlined in the agreement. This schedule specifies deadlines for both the payment of initial franchise fees and the opening of the franchised businesses. The Developer must also comply with the terms and conditions of Punch King Fitness's standard franchise agreement for each location.

The Area Development Agreement does not grant the Developer the right to use Punch King Fitness's trademarks; these rights are granted only through individual Franchise Agreements for each location. The agreement specifies that if the Developer meets the obligations of opening and operating franchises according to the agreed-upon schedule and minimum number, Punch King Fitness will not establish or license others to establish the same Punch King Fitness Model Concept in the Development Area. However, Punch King Fitness retains the right to establish or license other Punch King Fitness Model Concepts that are different than the Developer's Model Concept within the Development Area under the Punch King Fitness Marks and the System within the Development Area.