Can Punch King Fitness sell through internet sites?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Sell or franchise others to sell the services and products authorized for Punch King Fitness Franchised Businesses using the Punch King Fitness Marks or other trademarks, service marks, and commercial symbols through alternate channels of distribution; venues; joint marketing with partner companies; direct mail; catalog sales; internet sites; and co-branding strategies, under such terms and conditions as Franchisor deems appropriate.
Advertise, promote, market, or sell goods or services using the Punch King Fitness Marks over the internet, the World Wide Web, or any other electronic network.
We and our affiliates do not operate or have plans to operate or franchise others to operate a business selling the same goods or products under a different name or solicit customers within your Territory except as stated above.
Source: Item 12 — TERRITORY (FDD pages 35–38)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, Punch King Fitness retains the right to sell or franchise others to sell services and products through internet sites. This means that while a franchisee may operate a physical Punch King Fitness Training Facility, Punch King Fitness can also utilize online channels to sell the same services and products.
This has a few implications for franchisees. First, Punch King Fitness is not obligated to ensure that no other franchise will conduct operations in a franchisee's territory. Punch King Fitness also reserves the right to determine how to respond to any such situation and is not required to pay compensation for the company or other franchisees soliciting or accepting orders in a franchisee's territory. Second, Punch King Fitness can market and sell goods or services using their marks over the internet. This could create competition for franchisees within their own territories, as customers could potentially purchase services or products online instead of directly from the franchisee.
However, the FDD also states that franchisees do not have the right to use other channels of distribution such as the internet to make sales outside of their territory unless Punch King Fitness gives written consent to serve another specified area where no other Punch King Fitness franchise or company-owned unit is located. If a franchisee is granted consent to service another specified area, they are obligated to pay royalty fees and other fees for the services performed or products sold.
In summary, Punch King Fitness reserves significant rights to utilize internet sales channels, which could impact a franchisee's business. Franchisees should carefully consider the potential for competition from these channels and the terms under which they might be able to expand their own online sales efforts.