Does Punch King Fitness require a designated full-time on-premise manager for the franchised business?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You must maintain a designated full-time on-premise manager of the franchised business who we approve devotes his/her full-time and energy to the operation of the Franchised Business and successfully complete the initial training program to our satisfaction. The designated on-site manager must sign a confidentiality, non-solicitation, and non-competition agreement in a form that is satisfactory to us. The manager need not have an ownership interest in the franchise. No individual franchisee or any shareholder, partner, member, or other owner of a business entity franchisee may compete with us or own an interest in any competitor of ours anywhere during the term of your Franchise Agreement or within 25 miles of any Punch King Fitness franchise territory for two years after the expiration or termination of your Franchise Agreement.
You are not required or obligated to participate personally in the direct operations of the Franchised Business; however, we strongly recommend that you do so. You and each shareholder, partner, member, and other equity owners of the franchise, and each individual shareholder, partner, member, and other equity owners of any shareholder, partner, member, and other equity owners that is itself a business entity, must personally guarantee all of the franchisee's obligations and performance under the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 41)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, a franchisee must have a designated full-time on-premise manager for the franchised business. This manager must be approved by Punch King Fitness and must dedicate their full-time efforts to operating the franchise.
The designated manager is required to successfully complete the initial training program to Punch King Fitness's satisfaction. Additionally, the on-site manager must sign a confidentiality, non-solicitation, and non-competition agreement. This agreement ensures the manager will not disclose confidential information or compete with Punch King Fitness during the franchise term and for two years after, within a 25-mile radius of any Punch King Fitness franchise territory.
While the manager is required to be full-time and on-site, they do not need to have an ownership stake in the franchise. Although franchisees are not required to participate in the direct operations of the business, Punch King Fitness strongly recommends it. This structure allows for flexibility in how the franchise is managed, whether by an owner-operator or a hired manager, while still ensuring that someone is dedicated to the business's daily operations and upholding Punch King Fitness's standards.