Who bears the cost of modifying the former C3 Wellness Spa location after termination?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (7) Except in the event an authorized transferee continues to operate Franchisee's former Spa at Franchisee's Spa Location subsequent to a Transfer, at Franchisee's sole cost and expense: (a) modify and alter Franchisee's former Spa, Franchisee's former Spa Facility, and Franchisee's Spa Location, as reasonably necessary or otherwise required by Franchisor, to ensure that Franchisee's Spa Facility and Franchisee's Spa Location have been completely de-identified and differentiated from its former appearance to prevent any confusion by the public as to the continued existence of a Spa at the Spa Location; (b) remove from Franchisee's Spa Facility and Franchisee's Spa Location all distinctive physical and structural features identifying a Spa and all distinctive signs, trade dress and emblems associated with the System including, without limitation, signs, trade dress, and emblems bearing the Licensed Marks; and (c) make specific additional changes to Franchisee's Spa Facility and Franchisee's Spa Location as Franchisor reasonably requests for the purpose of completely de-identifying Franchisee's former Spa.
Franchisee shall immediately initiate the foregoing actions and complete such actions within the period of time designated by Franchisor, and Franchisee agrees that Franchisor and/or Franchisor's designated agents may enter the premises of Franchisee's Spa Facility and Franchisee's Spa Location at any time to make foregoing alterations at Franchisee's sole risk and expense.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the franchisee is responsible for the costs associated with modifying the former spa location after termination, unless an authorized transferee continues to operate at that location.
Specifically, the franchisee must modify and alter the former spa to ensure it is completely de-identified and differentiated from its previous appearance as a C3 Wellness Spa. This is to prevent any public confusion about the continued existence of a C3 Wellness Spa at that location. The franchisee is required to remove all distinctive physical and structural features, signs, trade dress, and emblems associated with the C3 Wellness Spa system, including those bearing the licensed marks.
Furthermore, the franchisee must make any additional changes reasonably requested by C3 Wellness Spa to completely de-identify the former spa. The franchisee is expected to start these actions immediately and complete them within the timeframe designated by C3 Wellness Spa. C3 Wellness Spa or its agents have the right to enter the premises to make these alterations at the franchisee's sole risk and expense. This ensures that the location no longer represents or resembles a C3 Wellness Spa after the franchise agreement ends, maintaining brand integrity.