Can Punch King Fitness withdraw consent for 'Outside Territory Activity'?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee may not and is not granted the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory or operate using other Model Concepts unless we give you written consent to serve another specified area where no other Punch King Fitness franchise or company-owned unit is located. Franchisee acknowledges and agrees to obtain the prior written consent of Franchisor before advertising, offering, or selling beyond the aforementioned grant herein. If Franchisee is granted consent to service another specified area, Franchisee covenants and agrees to be obligated to pay royalty fees and other fees to Franchisor for the services performed or products sold.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
Based on the 2024 Punch King Fitness Franchise Disclosure Document, a franchisee is not granted the right to use other channels of distribution to make sales outside of their territory unless Punch King Fitness gives written consent. This includes methods like internet sales, catalog sales, telemarketing, or other direct marketing, or operating using other Model Concepts.
The franchisee must obtain prior written consent from Punch King Fitness before advertising, offering, or selling beyond their designated territory. If consent is granted to service another specified area, the franchisee is obligated to pay royalty fees and other fees to Punch King Fitness for the services performed or products sold in that area.
However, the excerpt does not explicitly state whether Punch King Fitness can withdraw this consent once it has been granted. A prospective franchisee should seek clarification from Punch King Fitness regarding the conditions under which consent for outside territory activity can be withdrawn, and what the process would be for such a withdrawal. This is a crucial point to understand, as it directly impacts the franchisee's ability to conduct business outside their primary territory and the potential revenue streams associated with such activities.