For C3 Wellness Spa, what constitutes a 'Prohibited Activity'?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
"Prohibited Activities" refers to and means any or all of the following: (a) owning and/or having any legal or equitable interest whether, as an individual proprietor or as an owner, partner, member or shareholder of a Corporate Entity or, in any similar capacity, in a Competitive Business (other than owning an interest of 3% or less in a publicly traded company that is a Competitive Business); (b) operating, managing, funding and/or performing services (whether as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or in any similar capacity) for a Competitive Business; (c) diverting or attempting to divert any business or customers from us (or one of our affiliates or franchisees); and/or (d) inducing any customer or client of ours (or of one of our affiliates or franchisees) or of Franchisee to any other person business that is not an C3 Wellness.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, a 'Prohibited Activity' is explicitly defined to protect the brand's interests and prevent franchisees from engaging in activities that could harm the business.
Specifically, C3 Wellness Spa defines prohibited activities as owning or having a legal or equitable interest in a Competitive Business, whether as a sole proprietor, owner, partner, member, or shareholder of a Corporate Entity. However, owning 3% or less of a publicly traded company that is a Competitive Business is an exception.
Additionally, operating, managing, funding, or performing services for a Competitive Business, whether as an employee, officer, director, manager, consultant, representative, agent, or creditor, is considered a prohibited activity. Also, diverting or attempting to divert any business or customers from C3 Wellness Spa (or its affiliates or franchisees) and inducing any customer or client of C3 Wellness Spa (or its affiliates or franchisees) to another business that is not a C3 Wellness Spa are prohibited.