To whom are construction and leasehold improvement payments made for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | When Due | To Whom Payment is Made | |
|---|---|---|---|---|
| Initial Franchise Fee | $45,000 | Lump sum | When Franchise | Us |
| (Note 1) | Agreement is signed | |||
| Construction and Leasehold Improvements (Note 2) | $350,000 – $400,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the payments for construction and leasehold improvements, which range from $350,000 to $400,000, are made to contractors, suppliers, and/or the landlord. These costs are incurred as arranged during the construction and build-out phase of the C3 Wellness Spa location. This estimate covers the expenses related to construction, construction management, and the build-out of the spa, but it excludes furniture, fixtures, and equipment. It also includes flooring, wallpaper, and other specialized décor required by C3 Wellness Spa.
The FDD notes that these estimates are based on a typical spa size of approximately 4,000 square feet and assume the site is in a "vanilla box" condition, meaning it has basic interior improvements like heating/cooling, essential lighting, lavatories, a finished ceiling, prepped walls, and a concrete slab floor. The estimate does not include architect fees or other fees charged by licensed professionals other than general contractors and licensed tradesmen, nor does it include any special heating, cooling, or ductwork required by the spa.
Prospective franchisees should be aware that the actual costs for developing their C3 Wellness Spa may be higher or lower than the provided estimates. It is important to obtain detailed quotes from contractors and suppliers and to carefully negotiate lease terms with the landlord to manage these significant initial investment costs effectively. Additionally, franchisees should confirm with C3 Wellness Spa whether they have preferred vendors or contractors to ensure compliance with brand standards and potentially benefit from pre-negotiated rates.