BK Punk used to be a championship contender in the underground street fighting circuits. He and Terrance Beauregard were fierce rivals. However, much like happened with Terrance, there's not much to support retired street fighters. Punk was left penniless and without a home.
BK Punk has recently decided to begin living outside of Terrance's Hungry Wolf Pizza parlor. Terrance lets him stick around, as BK's hardcore obsession with his straight-edge lifestyle keeps the neighborhood smoke-free, drug-free, alcohol-free, and safe for the kids.