What are the components of the transaction price in a standard C3 Wellness Spa franchise arrangement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
$45,000, payable and due upon execution of the applicable Franchise Agreement for the First Development Spa.
This initial franchise fee is separate from and in addition to the Development Area Fee.
Development Spa Initial Franchise Fee for Other Development Spas
OTHER AUTHORIZED DEVELOPMENT SPAS: Provided that Franchisee is not in default of the terms of this C3 Wellness Multi-Unit Development Agreement (including but not limited to the Development Schedule set forth below) and that neither Franchisee nor Franchisee's affiliates are in default of any Franchise Agreement or other agreement with Franchisor, the Development Spa Initial Franchise Fee for each additional Development Spa (over and above the First Development Spa), is: $0 (Waived), payable at the time of signing the Franchise Agreement for each Development Spa.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the initial franchise fee for the first development spa is $45,000. This fee is payable upon the execution of the Franchise Agreement and is separate from, and in addition to, the Development Area Fee.
For each additional C3 Wellness Spa developed under the Multi-Unit Development Agreement, the initial franchise fee is waived ($0), provided the franchisee is not in default of the Development Agreement or any other agreement with the franchisor. This waiver is a significant benefit for franchisees looking to expand within their development area, reducing the upfront costs associated with opening multiple locations.
Prospective franchisees should carefully review the terms of the C3 Wellness Multi-Unit Development Agreement and ensure they understand the requirements for remaining in good standing to qualify for the waived franchise fees. Failing to meet the development schedule or other obligations could result in the loss of this benefit, significantly increasing the cost of opening additional spas.