What quality standards are required for suppliers to be approved by Punch King Fitness?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
products or services.
To approve a supplier, we require a sample of the product(s), information regarding the product or service's quality standards, availability, terms and conditions of purchase, and other information we may request. If desired, we may request a physical inspection of the supplier's place of business or manufacturing facility. Upon submitting samples and information required for approval, we will notify you within 30 days of our approval or disapproval of a supplier. As a condition of approval, we require reimbursing any costs or expenses we incur in approving the supplier. We may revoke the approval of any supplier upon 30 days' written notice to franchisees.
We estimate that assuming the estimated minimum initial costs to begin operations and other financial obligations are within the ranges described in Item 7 of this disclosure document, the proportion of your purchases and leases of goods and services from approved suppliers or of products that meet our specifications to be approximately 90% of all the purchases and leases in establishing your Punch King Fitness Franchised Business and approximately 25% of your ongoing costs of operating your Punch King Fitness Franchised Business.
Neither Punch King Fitness, Inc.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–25)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the criteria for designating approved suppliers include the supplier's ability to meet quality standards, availability, and consistency of products or services. To gain approval, a supplier must provide a product sample, information about the product or service's quality standards, availability, purchase terms and conditions, and any other information Punch King Fitness requests. Punch King Fitness may also conduct a physical inspection of the supplier's business or manufacturing facility.
After the supplier submits the required samples and information, Punch King Fitness will notify the supplier of their approval or disapproval within 30 days. The franchisee is responsible for reimbursing Punch King Fitness for any costs or expenses incurred during the approval process. Punch King Fitness retains the right to revoke a supplier's approval with 30 days' written notice to franchisees.
It is important to note that the specific criteria for designating and approving suppliers are not published and are not made available to franchisees. This lack of transparency could limit a franchisee's ability to suggest or evaluate alternative suppliers. Franchisees are required to purchase all fitness, training equipment, and flooring from suppliers and vendors that Punch King Fitness designates or approves. Punch King, LLC, an affiliate of Punch King Fitness in which certain officers have ownership interests, is the sole exclusive supplier of Punch King punching bags, training equipment, protective gear, flooring, and hanging rack systems.