Is time of the essence for the Punch King Fitness franchisee to submit the site approval package?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, time is indeed of the essence for franchisees when submitting the site approval package. Specifically, within sixty days of signing the Franchise Agreement, the franchisee must provide Punch King Fitness with a completed site approval package (SAP). This package includes a site approval form, an option contract, a letter of intent, or other evidence demonstrating favorable prospects for securing the site, photographs, demographic statistics, and any other materials Punch King Fitness requires.
This emphasis on timeliness means a prospective Punch King Fitness franchisee needs to act quickly and efficiently to gather all necessary documentation and information for the SAP. Failure to submit the SAP within the specified timeframe could potentially delay the site approval process and, consequently, the opening of the franchise. The franchisor has 30 days after receipt of the SAP to approve or disapprove the proposed site. If Punch King Fitness fails to provide written notice of approval or disapproval within those 30 days, the site is deemed disapproved.
Furthermore, Punch King Fitness will provide building specifications and review design plans, but the franchisee must retain a licensed architect and obtain a feasibility study from a qualified third party. On-site evaluations may be conducted by Punch King Fitness at no charge to the franchisee, with the number of evaluations depending on whether the franchisee has previously opened a Punch King Fitness location. However, these evaluations will only occur after Punch King Fitness receives the completed SAP.
Given the strict deadlines and the potential consequences of delays, prospective Punch King Fitness franchisees should prioritize site selection and preparation of the SAP to ensure compliance with the Franchise Agreement and to facilitate a smooth and timely launch of their franchise.