What does the term 'Territory' refer to in the Punch King Fitness franchise agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Home Address: City: State: ZIP: Home Telephone: SSN: Percentage of Ownership: Home Address: City: State: ZIP: Home Telephone: SSN: Percentage of Ownership: Home Address: City: State: ZIP: Home Telephone: SSN: Percentage of Ownership: Home Address: City: State: ZIP: Home Telephone: SSN: term of the Franchise Agreement to which this Exhibit 1 is attached. Signature The undersigned individual Franchisee, or if Franchisee is other than an individual, each of the Principals of Franchisee, hereby certify that the foregoing information is accurate and complete to the best of their knowledge and agree to notify Franchisor promptly of any change in any such information during the Print Name Print Name Print Name Print Name
EXHIBIT 2. SITE AND TERRITORY
TO THE PUNCH KING FITNESS FRANCHISE AGREEMENT
- The address and/or description of the Site for the Franchised Business shall be: 2. The Territory referenced in the Franchise Agreement shall consist of the following geographical area in the State of: Franchisor and Franchisee further agree that this Exhibit shall be attached to, incorporated in, and made a part of said Franchise Agreement between Franchisor and Franchisee. IN WITNESS WHEREOF, the parties hereto have executed this Agreement or caused this Agreement to be executed by their duly authorized agents as of the date first written above. FRANCHISOR: PUNCH KING FITNESS, INC. INDIVIDUAL FRANCHISEE: INDIVIDUAL FRANCHISEE: Print Name Print Name Date: Date:
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the 'Territory' is a geographical area defined in Exhibit 2 of the Franchise Agreement. This exhibit specifies the exact area in a particular state that is assigned to the franchisee.
Punch King Fitness, however, retains certain rights within and outside the franchisee's territory. They can operate or license others to operate similar businesses outside the territory. They can also sell Punch King Fitness services and products through various channels, including online platforms, regardless of the franchisee's territory.
It's important to note that Punch King Fitness is not obligated to prevent other franchisees from conducting operations within a franchisee's territory, nor are they required to compensate the franchisee if such situations occur. The franchisor also reserves the right to modify the boundaries of the territory, with their decision being final and binding.