What is the amount of the non-refundable Initial Franchise Fee for a C3 Wellness Spa franchise?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement
When you sign a Franchise Agreement, you will pay to us a non-refundable initial franchise fee in the amount of $45,000 (the "Initial Franchise Fee"). The Initial Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises that we offer through this Disclosure Document.
Multi-Unit Development Agreement
If you sign a Multi-Unit Development Agreement, you must pay a fixed non-refundable development area fee of $40,000 for each Spa (the "Development Area Fee"), over and above the first Spa authorized by the Franchise Agreement, that you will be authorized to develop under the Multi-Unit Development Agreement, as follows:
Two Spas – If under a Development Agreement you are authorized to develop two Spas, the amount of the Initial Franchise Fee for your first Spa is $45,000 and the Development Area Fee is $40,000 for the second Spa that you are authorized to develop under your Development Agreement. At the time of signing the Franchise Agreement for the second Spa, over and above the first Spa authorized by your Development Agreement, the initial franchise fee will be waived.
Three to Five Spas – If, under a Development Agreement, you are authorized to develop, in aggregate, three Spas to five Spas the amount of the Initial Franchise Fee for your first Spa is $45,000, the Development Area Fee is equal to: (i) $40,000 for the second Spa; and (ii) $35,000 for each Spa, over and above the second Spa, that you are authorized to develop under your Development Agreement. At the time of signing the Franchise Agreement for each additional Spa, over and above the first Spa authorized by your Development Agreement, the initial franchise fee will be waived.
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the initial franchise fee for a single-unit franchise is $45,000. This fee is non-refundable and is due upon signing the Franchise Agreement. C3 Wellness Spa considers this fee fully earned upon payment. The method for calculating the initial franchise fee is uniform for all franchises offered in the disclosure document.
For franchisees interested in a Multi-Unit Development Agreement, the initial franchise fee structure varies. While the initial franchise fee for the first spa remains $45,000, a Development Area Fee applies for each additional spa. For developing two spas, the Development Area Fee is $40,000 for the second spa, with the initial franchise fee waived for the second location. For those developing three to five spas, the Development Area Fee is $40,000 for the second spa and $35,000 for each subsequent spa, with the initial franchise fee waived for each additional spa beyond the first.
It is important to note that the initial franchise fee is separate from and in addition to the Development Area Fee. Additionally, the waiver of the initial franchise fee for additional spas under a Multi-Unit Development Agreement is contingent upon the franchisee remaining in compliance with the terms of the C3 Wellness Multi-Unit Development Agreement and any other agreements with C3 Wellness Spa.