What does the construction and leasehold improvements estimate for C3 Wellness Spa exclude?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 2: Construction and Leasehold Improvements – This estimate is for the cost of construction, construction management and build-out of a Spa Location Franchise but does not including furniture, fixtures and equipment. This estimate also includes flooring, wallpaper and other specialized décor that we required for your Spa Location Franchise. Our estimates are based on the assumption that the typical square footage of a spa is approximately 4,000 square feet. These estimates are based on the assumption that the site for your Spa has been obtained in the "vanilla box" stage which refers to the interior condition of either a new or existing building in which the existing improvements generally consist of heating/cooling with delivery systems, essential lighting, electrical switches and outlets, lavatories, a finished ceiling, walls that are prepped for painting and a concrete slab floor. These numbers are not inclusive of any architect fees or other fees charged by licensed professionals other than general contractors and licensed tradesmen and do not include any special heating cooling or ductwork required by a Spa. The costs for developing your Spa may be higher or lower than the estimates provided.
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 estimate for construction and leasehold improvements, which ranges from $350,000 to $400,000, does not include furniture, fixtures, and equipment. It does include flooring, wallpaper, and other specialized décor required by C3 Wellness Spa. The estimate assumes a spa size of approximately 4,000 square feet and that the site is in a "vanilla box" condition, meaning it already has essential heating/cooling systems, lighting, electrical outlets, lavatories, a finished ceiling, prepped walls, and a concrete slab floor.
Furthermore, the estimate excludes architect fees and other fees charged by licensed professionals other than general contractors and licensed tradesmen. It also does not cover any special heating, cooling, or ductwork that may be required for a C3 Wellness Spa. The FDD notes that the actual costs for developing a C3 Wellness Spa location may be higher or lower than the provided estimates.
Prospective franchisees should be aware that these exclusions can significantly impact the total investment required to open a C3 Wellness Spa franchise. It is crucial to obtain detailed quotes for furniture, fixtures, equipment, and any specialized HVAC work to accurately budget for the project. Additionally, franchisees should factor in professional fees for architects and other consultants to ensure compliance with C3 Wellness Spa's brand standards and local regulations.
Understanding these exclusions is essential for franchisees to avoid underestimating the initial investment and to ensure they have sufficient capital to complete the build-out of their C3 Wellness Spa location. Consulting with experienced contractors and professionals is highly recommended to obtain accurate cost estimates and to navigate the complexities of construction and leasehold improvements.