Who determines the Designated Territory for a C3 Wellness Spa franchise?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (9) Except as otherwise provided in this Agreement including, but not limited to, the Reserved Rights, provided that, at all times Franchisee is and remains in compliance with all of the terms and provisions of this Agreement, during the Term of this Agreement, neither Franchisor nor any affiliate of Franchisor will establish or operate, or grant a franchise to any third party to establish or operate, a Spa Location Franchise using the Licensed Marks and System at a Spa Location that is located within Franchisee's Designated Territory (provided that a Designated Territory has been designated and approved by Franchisor in accordance with the terms of this Agreement).
Notwithstanding the foregoing, Franchisee agrees that Franchisee may face competition from other C3 Wellness, Spa Location Franchises and other System franchisees with Spa locations and/or designated territories that are located adjacent to and/or within a close proximity to Franchisee's Spa Location and/or Designated Territory.
Franchisee agrees that although Franchisor may disapprove of any marketing medium that is distributed and/or reaches outside of Franchisee's Designated Territory, that Franchisor is not obligated to do so and that Franchisee may face competition from other Spas, Spa Location Franchises and System franchisees that market and promote their Spa(s) through internet, mail, public relations, and other marketing activities and mediums that are distributed to or within Franchisee's Designated Territory.
Franchisee agrees that
Franchisee shall not receive any compensation whatsoever if Franchisor or another System franchisee solicits customers from within Franchisee's Designated Territory; and
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the franchisor, in accordance with the terms of the Franchise Agreement, designates and approves the Designated Territory for a franchisee. The franchisor may prevent a franchisee from soliciting spa customers outside of their Designated Territory, using their reasonable business judgment.
C3 Wellness Spa retains the right to establish or operate franchises within a franchisee's Designated Territory, or grant a franchise to a third party to do so, if the franchisee is not in compliance with the terms of the agreement. The franchisee may face competition from other C3 Wellness Spa locations near their location or Designated Territory.
Even if the franchisor disapproves of marketing that extends beyond a franchisee's Designated Territory, they are not obligated to prevent it. The franchisee may face competition from other spas and franchisees marketing within their Designated Territory through various channels. The franchisee will not receive compensation if the franchisor or another franchisee solicits customers from within their Designated Territory.
It is important for a prospective C3 Wellness Spa franchisee to understand the implications of the Designated Territory and the potential for competition from other franchisees and marketing activities. Franchisees should carefully review the terms of the Franchise Agreement related to the Designated Territory and discuss any concerns with the franchisor before investing in a franchise.