What business is C3 Wellness Spa's Manager organized to engage in?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, Franchisor has developed a distinctive and proprietary system (the "System") for the nonmedical development, management and, potentially, the operation of a spa (the "Spa") that offers and provides facial treatment services, medical spa services, wellness programs, medical testing, bioidentical hormone replacement, IV vitamin therapy, massage therapy services, physical therapy, light and laser skin enhancement, cosmetic services, topical skin treatments, essential oils, and spa related services and retail products (the "Approved Spa Products and Services") under the Licensed Marks (defined below);
WHEREAS, the System relates to and includes the development and operation of a spa location franchised business (hereinafter referred to as either the "Spa Location Franchise" or the "Franchised Business"), that depending on Franchisee's qualifications and applicable local, state and federal laws and regulations involves either:
a Spa Location Franchise that Owns and Operates a Spa: Franchisee's development and operation of a Spa Location Franchise that owns and operates a Spa that provides the Approved Spa Products and Services under the Licensed Marks and in accordance with the requirements of the System; or
a Spa Location Franchise that Owns and Operates a Spa Facility and Management Company: Franchisee's development and operation of a Spa Location Franchise that owns and operates a management business (the "Spa Management Business") that provides management, marketing, and spa facility based services (the "Spa Facility and Management Services") to medical practices, professional corporations and licensed professionals authorized to offer and provide the Approved Spa Products and Services (hereinafter referred to as "Authorized Care Providers") at a Spa that is operated and potentially owned by the Authorized Care Providers authorized to offer and provide the Approved Spa Products and Services.
WHEREAS, If the Franchised Business is a Spa Location Franchise that owns and operates a Spa Management Business, among other things, Franchisee will be required to enter into a management agreement (the "Management Agreement") with the Authorized Care Providers whereby, among other things, Franchisee will provide the Authorized Care Providers the Spa Facility and Management Services and grant the Authorized Care Providers a license to use the Licensed Marks at Franchisee's spa facility location (the "Spa Location");
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
The 2024 C3 Wellness Spa Franchise Disclosure Document describes two potential business models for a franchisee. The first is a "Spa Location Franchise that Owns and Operates a Spa". In this model, the franchisee develops and operates a spa providing approved spa products and services under the C3 Wellness Spa licensed marks, adhering to the standards of the C3 Wellness Spa system. These services can include facial treatments, medical spa services, IV vitamin therapy, massage therapy, and more.
The second model is a "Spa Location Franchise that Owns and Operates a Spa Facility and Management Company". Here, the franchisee operates a management business, offering management, marketing, and spa facility-based services to medical practices and licensed professionals, referred to as "Authorized Care Providers." These providers are authorized to offer the approved spa products and services at a spa that they operate.
In this second model, the C3 Wellness Spa franchisee would need to enter into a management agreement with the Authorized Care Providers. This agreement would outline the provision of spa facility and management services by the franchisee and grant the Authorized Care Providers a license to use the C3 Wellness Spa licensed marks at the franchisee's spa facility location. The specific business activities will depend on which of these two models the franchisee chooses and is qualified to operate under, according to local, state, and federal laws.