What standards and specifications does Punch King Fitness provide for the franchised business?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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Punch King Fitness April 26, 2024 32 The site of a Punch King Fitness Training Facility Franchised Business is a 1,500 to 3000 square feet standalone building or space within a shopping center for Boutique Locations, 4,000 to 7,000 square feet space for a Medium Size Location, 7,000 to 10,000 square feet for a Full Fitness location, and 10,000 to 1500 square feet for a Big Box Locations. The Big Box location is our largest size location with between 10,000 to 1500 square feet. We do not select your site. Your site is subject to our approval (Section IV of the Franchise Agreement). We generally do not own or lease the premises or Site to franchises for the operation of the Franchised Business. To obtain our approval, you must provide all information and
documents about the site we require. The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms. The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. 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 for the Site of your Franchised Business (Section IV of the Franchise Agreement). You are responsible for conforming the Site premises to local ordinances and building codes and obtaining any required permits for constructing, remodeling, or decorating the Site premises. We may but are not obligated to provide you with assistance to ensure that your Site conforms to local ordinances and building codes or obtain any required permits for construction or remodeling.
The typical time between signing the Franchise Agreement, the first payment of consideration for the franchise, and opening the franchised business varies. However, you should be able to commence operation within 6 months after signing as required by the Franchise Agreement. Factors affecting this time period include how long it took to complete any modification of your Punch King Fitness site, completion of financing arrangements, compliance with local ordinances and obtaining permits, obtaining and installing equipment, your previous employment commitments (if any), your ability to complete our training program, and/or hiring and training personnel.
If you do not secure a Site, we do not approve a Site, you and us do not agree on a Site for your Franchised Business within 1 month from the signing of your Franchise Agreement, or you do not open your Franchised Business within 6 months of the signing of your Franchised Agreement, we may terminate your Franchise Agreement and retain all monies that you have paid us or our affiliates.
We do not select the site for any additional franchises under your Area Development Agreement, and we generally do not own the premises or lease sites for the Franchised Businesses under the Area Development Agreement. We approve each additional Site for the Franchised Businesses under the Area Development Agreement. Our then-current standards for Sites' approval will apply. 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 for the additional Sites of your Franchised Business. (Article III of the Area Development Agreement)
The typical time between signing the Area Development Agreement or the first payment of consideration for the Area Development Agreement and securing the Site for each additional franchise under the Area Development Agreement is an additional 1 month for each franchise.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–35)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the franchisor provides franchisees with specific standards and specifications for operating their franchised business. Punch King Fitness does not select the site for the franchise, but they do approve it. The site of a Punch King Fitness Training Facility Franchised Business is a 1,500 to 3000 square feet standalone building or space within a shopping center for Boutique Locations, 4,000 to 7,000 square feet space for a Medium Size Location, 7,000 to 10,000 square feet for a Full Fitness location, and 10,000 to 1500 square feet for a Big Box Locations.
For the physical location, Punch King Fitness provides building specifications for the real property space and reviews the franchisee's design plans. However, the franchisee is responsible for retaining a licensed architect and obtaining a feasibility study from a qualified third party. The franchisee is also responsible for ensuring the site complies with local ordinances and building codes, as well as obtaining the necessary permits for construction, remodeling, or decorating. Punch King Fitness may offer assistance in ensuring compliance with local ordinances and obtaining required permits, but they are not obligated to do so.
Punch King Fitness also maintains and provides updated standards, specifications, and a list of designated and approved suppliers for all décor, equipment, signs, fixtures, opening inventory, supplies, products, and other materials needed to operate the franchised business. Notably, Punch King, LLC, the franchisor's parent company, is the sole exclusive supplier of Punch King Punching bags, training equipment, protective gear, flooring, and hanging rack systems to Punch King Fitness franchisees. The franchisor also provides a listing of all products and services that the franchised business may offer. Franchisees must also submit all advertising and promotional materials to Punch King Fitness for prior approval and adhere to the brand's social media guidelines, as Punch King Fitness retains ownership of all related intellectual property rights.