What is the amount of the Management Service Fees charged by C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor has the right to charge fees and expenses, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, equal to 20% of Gross Sales for management services (the "Management Service Fees").
Any determination as to whether or not Franchisor may elect to provide management services, if any, and the extent of such services, and/or the discontinuation thereof, shall be exclusively determined by Franchisor in Franchisor's Reasonable Business Judgment.
The Management Service Fee shall be immediately payable upon invoice by us.
- (4) Franchisee will at all times maintain sufficient working capital to fulfill its obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, C3 Wellness Spa has the right to charge fees and expenses for management services. These Management Service Fees are determined by C3 Wellness Spa in their reasonable business judgment and are equal to 20% of Gross Sales.
This means that if C3 Wellness Spa elects to provide management services for a franchisee's location, they will charge 20% of the location's gross sales as compensation for those services. This fee is in addition to any other fees outlined in the Franchise Agreement, such as royalty fees.
The Management Service Fee is immediately payable upon invoice. The decision to provide management services, the extent of those services, and their discontinuation are all determined exclusively by C3 Wellness Spa in their reasonable business judgment. This clause also specifies that the franchisee is still responsible for fulfilling their obligations under the agreement and maintaining sufficient working capital, even if C3 Wellness Spa provides a manager for the location.