Does the New York Addendum change any of the obligations of Punch King Fitness franchisees?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SERVICES OR INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN ANYTHING IN THIS FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND THE APPROPRIATE STATE OR PROVINCIAL AUTHORITY. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CAN NOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS THAT ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the New York Addendum includes specific information for prospective franchisees in New York. It states that information comparing franchisors is available by calling state administrators or public libraries. The addendum also clarifies that registration of the franchise in New York does not mean the state recommends it or has verified the information in the Franchise Disclosure Document.
Furthermore, the New York Addendum instructs prospective franchisees to contact the Federal Trade Commission and the appropriate state or provincial authority if they find anything untrue in the Franchise Disclosure Document. It also states that Punch King Fitness may negotiate terms with potential franchisees but cannot use this negotiation to impose terms less favorable than those in the FDD.
This addendum serves to inform potential New York franchisees of their rights and resources, as well as the limitations of the state's registration process. It ensures transparency and encourages franchisees to conduct thorough due diligence. While it doesn't explicitly change obligations, it provides additional information and protections for franchisees operating in New York, ensuring they are aware of their rights and how to report any discrepancies.