Does Punch King Fitness have the option to have me assign the Franchised Business's website to them upon termination?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Pro | ovision | Section in Franchise Agreement | Summary |
|---|---|---|---|
| your Principals violate any of the Covenants of the Franchisee, commit an infringement of the Proprietary Marks, or communicate, divulge, or use Confidential Information contrary to the Franchise Agreement. | |||
| i. | Your obligations on termination or nonrenewal | Article XX | Upon the termination, you must: cease to operate your Franchised Business and not hold itself out as a present or former Punch King Fitness franchisee of Franchisor; cease to use the Punch King Fitness System or Punch King Fitness Marks; make modifications to the Franchised Business Site to prevent the operation of any business on the Site that might be deemed substantially similar to the Punch King Fitness Franchised Business; at our option, assign to us (i) telephone numbers of the Franchised Business and all related Yellow Pages, White Pages, and other business listings, and (ii) Web Sites, web pages, listings, banners, URLs, advertisements, or any other services and links, and sell us the assets of the Franchised Business; turn over the Pun |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–53)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, upon termination of the franchise agreement, Punch King Fitness has the option to require the franchisee to assign the business's website to them. Specifically, Punch King Fitness can request assignment of web sites, web pages, listings, banners, URLs, advertisements, or any other services and links.
This means that if a franchisee's agreement is terminated, Punch King Fitness has the right to take control of the online presence associated with the franchise. This includes not only the website itself but also any related online assets like URLs and advertisements.
Additionally, upon termination, the franchisee must cease operating the Franchised Business and discontinue using the Punch King Fitness System or Marks. They must also modify the Franchised Business Site to prevent the operation of any business on the Site that might be deemed substantially similar to the Punch King Fitness Franchised Business. The franchisee may also be required to sell the assets of the Franchised Business to Punch King Fitness.