What does Punch King Fitness's site approval indicate?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5. Within sixty (60) days after the execution of the Franchise Agreement, Franchisee shall submit to Franchisor, in a form specified by Franchisor, a completed site approval package, which shall include a site approval form prescribed by Franchisor, an option contract, a letter of intent, or other evidence satisfactory to Franchisor which describes Franchisee's favorable prospects for obtaining such site, photographs of the site, demographic statistics, and such other information or materials as Franchisor may reasonably require (collectively, the SAP).
Franchisee acknowledges that time is of the essence.
Franchisor shall have thirty (30) days after receipt of the SAP from Franchisee to approve or disapprove, in its sole discretion, the proposed site for the Franchised Business.
In the event Franchisor does not approve a proposed site by written notice to Franchisee within said thirty (30) days, such site shall be deemed disapproved by Franchisor.
6. Franchisor shall furnish to Franchisee the following:
(a) For your Site, we provide building specifications for your real property space, we review your design plans, you must retain a licensed architect, and you must obtain a feasibility study prepared by a qualified third party;
(b) Such on-site evaluation as Franchisor may deem advisable in response to Franchisee's requests for site approval; provided, however, that Franchisor shall not provide on-site evaluation for any proposed site prior to the receipt of a completed SAP for such site prepared by Franchisee pursuant to this Addendum above.
If the on-site evaluation is deemed necessary and appropriate by Franchisor, Franchisor shall, at no charge to Franchisee, conduct: (a) up to two (2) on-site evaluations if the Franchised Business is the first Punch King Fitness Franchised Business to be developed by Franchisee, or (b) one (1) on-site evaluation if Franchisee has opened a Punch King Fitness Franchised Business prior to the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees must submit a completed site approval package (SAP) to the franchisor within 60 days of signing the Franchise Agreement. This package includes a site approval form, an option contract, a letter of intent, or other evidence showing favorable prospects for obtaining the site, photographs, demographic statistics, and any other information Punch King Fitness requires. Time is of the essence in this process.
Punch King Fitness then has 30 days after receiving the SAP to either approve or disapprove the proposed site. If Punch King Fitness fails to provide written notice of approval or disapproval within that 30-day period, the site is automatically deemed disapproved. This tight timeline emphasizes the importance of franchisees promptly identifying and securing potential locations that meet Punch King Fitness's criteria.
For the site, Punch King Fitness provides building specifications and reviews the franchisee's design plans. The franchisee must retain a licensed architect and obtain a feasibility study from a qualified third party. Punch King Fitness may also conduct on-site evaluations in response to a franchisee's request for site approval, but only after receiving the completed SAP. The number of on-site evaluations Punch King Fitness conducts at no charge to the franchisee depends on whether the franchisee is opening their first Punch King Fitness franchise. They will conduct up to two evaluations for a first-time franchisee and one evaluation for franchisees who have previously opened a Punch King Fitness location.
These procedures ensure that each Punch King Fitness location aligns with the brand's standards and has a high likelihood of success, based on factors like location demographics and operational feasibility. The franchisee bears the initial responsibility for site selection and due diligence, while Punch King Fitness provides guidance, specifications, and final approval to maintain consistency and protect the brand's reputation.