How are credit card processing fees generally determined for a C3 Wellness Spa franchise?

According to C3 Wellness Spa's 2024 Franchise Disclosure Document, franchisees must use the franchisor's designated supplier and vendor for credit card processing, which may be integrated with the point of sale system that C3 Wellness Spa designates. Credit card processing fees are generally based on a percentage of all credit card processed Gross Sales.

This means that a C3 Wellness Spa franchisee's credit card processing fees will fluctuate depending on their gross sales made through credit card transactions. Higher sales will result in higher processing fees, while lower sales will result in lower fees. This is a common practice in many franchise systems, as it aligns the processing fees with the franchisee's revenue.

Prospective franchisees should inquire about the specific percentage charged by the designated credit card processor to fully understand this expense. It would also be prudent to ask if C3 Wellness Spa receives any rebates or other benefits from the designated supplier based on the franchisees' credit card processing volume, as this is a common practice in franchising.