How does C3 Wellness Spa define the Designated Territory for a Spa Location Franchise?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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Pre-Opening Obligations
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- Grant of Franchise We will grant you the right to operate and/or manage a Spa Location Franchise at a single Spa Location that is located within a designated territory. (Franchise Agreement, Article 2);
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- Franchise Agreement Designated Territory Once you secure a Spa Location that we approve, we will define the Designated Territory for your Spa Location Franchise and include the geographic boundaries and/or a description of your Designated Territory within the Schedules or Exhibits to the Franchise Agreement. (Franchise Agreement, Article 2 and Schedule 1);
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- Multi-Unit Development Agreement Development Territory If you entered into a Development Agreement, we will designate your Development Territory. The Spa Locations to be developed by you must be located within the Development Territory. Once you select a Spa Location that we approve within the Development Territory, within each respective Franchise Agreement we will define the Designated Territory for each respective Spa Location. (Multi-Unit Development Agreement, Article 2). For all Spa Locations developed under a Multi-Unit Development Agreement, our approval of a Spa Location and the Designated Territory for each Spa Location will be made using our then current site criteria;
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- Manuals We will loan you a copy of our confidential and proprietary Manuals. You must operate the Franchised Business in accordance with the Manuals and all applicable laws, rules and regulations. At all times, we reserve the right to supplement, modify and update the Manuals. (Franchise Agreement, Article 4.C.). The operations manual as of the Issuance Date of this Disclosure Document consists of 610 pages
and the table of contents to the operations manual is attached as Exhibit C to this Disclosure Document (Franchise Agreement, Article 4).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–38)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the Designated Territory for a Spa Location Franchise is defined after the franchisee secures a location that C3 Wellness Spa approves. The geographic boundaries or a description of the Designated Territory will then be included within the schedules or exhibits to the Franchise Agreement.
If a franchisee enters into a Multi-Unit Development Agreement, C3 Wellness Spa will designate a Development Territory. The Spa Locations developed under this agreement must be located within the Development Territory. Once a site is selected and approved within the Development Territory, C3 Wellness Spa will define the Designated Territory for each respective Spa Location in each Franchise Agreement. The approval of the Spa Location and Designated Territory will be based on C3 Wellness Spa's then-current site criteria.
C3 Wellness Spa retains the right to review and approve the proposed site selected by the franchisee. However, C3 Wellness Spa may agree to designate and grant a Designated Territory before the franchisee selects a Spa Location. In this case, the franchisee must locate their Spa Location Franchise within the Designated Territory and at a site approved by C3 Wellness Spa. The franchisee must obtain C3 Wellness Spa's approval of their Spa Location.