What is the purpose of the 'Development Schedule' section in the Punch King Fitness Area Development Agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ights to use the Marks are granted only by Franchise Agreements.
II. FEES
The total amount of the Development Fee is listed in Exhibit 2 (the "Development Fee"). The Development Fee will be applied toward the initial franchise fee due under subsequent Franchise Agreements in the manner specified in Exhibit 2. Developer will pay the balance of the initial franchise fee as so stipulated and due under the then Current Franchise Agreement for each Franchised Business at the time the Franchise Agreement for each Franchised Business is executed. The Development Fee will not be refundable, notwithstanding anything to the contrary in this Agreement or any Franchise Agreement.
III. DEVELOPMENT SCHEDULE
Developer must enter into Franchise Agreements and open and operate Punch King Fitness Franchised Business in accordance with the deadlines set forth in the Development Schedule.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the Development Schedule in the Area Development Agreement outlines the specific deadlines and requirements for the developer to open and operate Punch King Fitness Franchised Businesses. The developer must adhere to the timelines set forth in this schedule to maintain their rights under the agreement.
The Development Schedule specifies "Fee Deadlines," by which the developer must submit the initial franchise fee and a signed Franchise Agreement for a certain number of Punch King Fitness locations. It also sets "Opening Deadlines," which dictate when the specified number of Punch King Fitness Franchised Businesses must be open and operating. The franchisor must approve the sites for these businesses according to the terms of the Franchise Agreement.
Failure to meet these deadlines can result in an "Event of Default," potentially leading to the termination of the Area Development Agreement. Specifically, failing to pay the initial franchise fee or execute any Franchise Agreement by the Fee Deadline, or failing to have the minimum number of Punch King Fitness locations open and operating by the Opening Deadline, are considered Events of Default. If such an event occurs, Punch King Fitness has the right to terminate the agreement and all rights granted to the developer.