How does C3 Wellness Spa define 'Private Pay' sales?

According to C3 Wellness Spa's 2024 Franchise Disclosure Document, 'Private Pay' refers to sales made through cash or credit that are not paid for by customers' insurance. These sales also exclude Third Party Sales or Medical Sales. This definition is important for prospective franchisees to understand, as it clarifies which revenue streams are categorized as 'Private Pay' versus other payment methods like insurance or third-party vendors.

Understanding the distinction between 'Private Pay' and other sales categories is crucial for franchisees when analyzing the financial performance representations provided in Item 19 of the FDD. For example, the FDD includes tables showing sales by payment type for company-owned outlets, breaking down revenue into 'Private Pay', 'Medical Sales', and 'Third Party Sales'. This allows potential franchisees to see the relative importance of each payment method to the overall revenue of a C3 Wellness Spa.

By excluding insurance payments and third-party payments, 'Private Pay' sales represent the revenue directly generated from customers using their own funds. This category is likely influenced by factors such as the local economy, the effectiveness of marketing efforts, and the spa's ability to attract and retain customers who are willing to pay out-of-pocket for services. Franchisees should consider these factors when evaluating the potential for 'Private Pay' revenue at their specific location.