Is the Development Area for C3 Wellness Spa a defined geographical area?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, simultaneous or prior to the execution of this Agreement, Franchisor and Franchisee have entered into a Spa Franchise Agreement for, among other things, Franchisee's establishment, development and operation of a Spa to be located within a territory located within the Development Area (defined below);
WHEREAS, Franchisee has requested the right to develop and operate multiple Spas to be located with a defined geographical area (the "Development Area") in accordance with a development schedule that must be strictly adhered to, with each Spa within the Development Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then current Franchise Agreement for Spa Location Franchises (each, a "Franchise Agreement"); and
Franchisee agrees that, as to the Development Spas, Franchisee shall meet the requirements of the Development Schedule including, without limitation, requirements as to the number of Development Spas that must be timely developed, established, open, and in operation by Franchisee within the Development Area and as to each respective Development Period.
Franchisee agrees and represents that it has conducted its own independent investigation and analysis of the prospects for the establishment of Spa Location Franchises within the Development Area, that Franchisee approves of the Development Schedule as being reasonable and viable, and that Franchisee recognizes that failure to achieve the results described in the Development Schedule will constitute a material breach of this Agreement with time being of the essence.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the Development Area is a defined geographical area where the franchisee is granted the right to develop and operate multiple spas, according to a strict development schedule. The franchisee must open and operate each spa within the Development Area, adhering to the brand's standards and specifications, as outlined in the Franchise Agreement and Operations Manual.
The franchisee must follow the Development Schedule, which includes requirements for the number of spas to be developed, established, and operating within specific Development Periods. The franchisee's failure to meet the Development Schedule constitutes a material breach of the agreement.
Prior to the agreement, the franchisee acknowledges conducting an independent investigation and analysis of the prospects for establishing spa locations within the Development Area. The franchisee's approval of the Development Schedule signifies their understanding that failure to achieve the described results will breach the agreement.