For C3 Wellness Spa, what is the definition of 'Restricted Period'?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
he Spa Locations for all other Spa Location Franchises that are in operation or under development during all or any part of the Post-Term Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area comprising Franchisee's Designated Territory plus a 25 mile radius surrounding Franchisee's Designated Territory or, if Franchisee is not granted or designated a designated territory, then a 25 mile radius surrounding Franchisee's Spa Location.
"Royalty and Activity Report" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
"Royalty Fee" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
"Royalty Rate" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
"Royalty Report" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
"Scheduled Business Commencement Date" refers to and means the date that occurs on the nine month anniversary of the Effective Date of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the 'Restricted Territory' is defined in relation to the franchisee's Designated Territory or Spa Location. The document specifies that the Restricted Territory includes the franchisee's Designated Territory, or if no Designated Territory exists, a 25-mile radius around the franchisee's Spa Location.
Additionally, the Restricted Territory extends to a 25-mile radius around Spa Locations for all other C3 Wellness Spa franchises operating or under development as of the Effective Date. It also encompasses a 25-mile radius around Spa Locations for all other C3 Wellness Spa franchises that are in operation or under development during any part of the Restricted Period.
However, the document includes a caveat: if a court deems the defined Restricted Territory too broad to be enforceable, the Restricted Territory will then be limited to the franchisee's Designated Territory plus a 25-mile radius around it, or if no Designated Territory exists, a 25-mile radius around the franchisee's Spa Location. The FDD does not define the term 'Restricted Period'.