Have any states refused to register the Punch King Fitness franchise, by order or otherwise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
RHODE ISLAND ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following additional disclosures are required by the Rhode Island Franchise Investment Act:
A condition, stipulation, or provision requiring a franchise to waive compliance with or relieving a person of a duty or liability imposed by or a right provided by this act or a rule or order under this act is void.
A provision is a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this act.
RHODE ISLAND ADDENDUM TO FRANCHISE AGREEMENT
The Franchise Agreement to which this addendum is attached is amended as follows to comply with the Rhode Island Franchise Investment Act.
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- A general release requiring as a condition of renewal, assignment, or transfer shall not apply to any claim or liability arising under the Rhode Island Franchise Investment Act.
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- Any provision in the Franchise Agreement that requires the application of the laws of another state or designates jurisdiction or venue in a forum outside the State of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
FRANCHISOR: PUNCH KING FITNESS, INC. Its: Its:
VIRGINIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following statements are added to Item 17.h.
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the development agreement do not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
WASHINGTON ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Punch King Fitness does not explicitly state whether any states have refused to register the franchise. However, the document includes addenda for Rhode Island, Virginia, and Washington, which address specific legal considerations and modifications to the franchise agreement to comply with these states' franchise laws.
For Rhode Island, the addendum clarifies that any provision requiring a franchisee to waive compliance with the Rhode Island Franchise Investment Act is void. It also states that any clause restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void concerning claims enforceable under the Act. This suggests that Punch King Fitness has taken steps to ensure compliance with Rhode Island law.
For Virginia, the addendum refers to the Virginia Retail Franchising Act, stating that it is unlawful for a franchisor to cancel a franchise without reasonable cause. It clarifies that if any grounds for default or termination in the agreement do not constitute "reasonable cause" under Virginia law, that provision may not be enforceable. This indicates an awareness of and adjustment to Virginia's franchise regulations.
Since the FDD includes addenda for these states, it implies that Punch King Fitness is registered or has taken steps to register in these states. However, the absence of a direct statement about refused registrations means a potential franchisee should independently verify Punch King Fitness's registration status in their specific state and inquire directly with the franchisor about any past or pending registration issues to fully assess any potential barriers to franchising in their desired location.