How does C3 Wellness Spa define a 'New Franchise Outlet' for a given Calendar Year?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (l) New Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that for the first time opened and commenced operations during the Calendar Year.
For example, if a Franchise Outlet first opened for business in February 2022, as to the 2022 Calendar Year, the Franchise Outlet would qualify as a New Franchise Outlet and not as an Operational Franchise Outlet, see definition below.
If this Franchise Outlet remained in operation throughout the 2023 Calendar Year, it would qualify as an Operational Franchise Outlet during the 2023 Calendar Year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–55)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, a 'New Franchise Outlet' is defined relative to a specific calendar year. The document specifies that a 'New Franchise Outlet' is a franchise location that opens and begins operations for the first time during that particular calendar year.
For example, if a C3 Wellness Spa franchise opens in February 2022, it is considered a 'New Franchise Outlet' for the 2022 calendar year. However, it would not be classified as an 'Operational Franchise Outlet' for that year.
Furthermore, if that same franchise continues to operate throughout the subsequent year (2023), it would then be classified as an 'Operational Franchise Outlet' during the 2023 calendar year. This distinction is important for understanding how C3 Wellness Spa tracks and reports financial performance, as new and operational outlets may have different performance characteristics.