Does the Washington Addendum for Punch King Fitness address non-competition covenants for employees of a franchisee?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
WASHINGTON ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
Based on the 2024 Punch King Fitness Franchise Disclosure Document, there is no Washington Addendum that addresses non-competition covenants for employees of a franchisee included in the provided excerpts. The excerpts include addendums for California, and Rhode Island, and Virginia, but not Washington.
However, the franchise agreement does address non-competition more generally. The agreement states that the covenantor (which includes shareholders, officers, partners, or members of the franchisee) agrees to certain non-competition terms. During the term of the Franchise Agreement and for two years after, the covenantor cannot own, maintain, operate, engage in, or have any interest in, any business offering boxing and kickboxing or any other products or services that have been offered by the Franchised Business, within twenty-five (25) miles of any Punch King Fitness Franchised Business.
A prospective franchisee in Washington should inquire with Punch King Fitness about whether a Washington-specific addendum exists and whether it contains any provisions regarding non-competition agreements for the franchisee's employees. It would also be prudent to consult with a legal professional in Washington to understand the enforceability of non-competition agreements under Washington state law.