What is the 'Development Area' for a C3 Wellness Spa franchise?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Wellness | Multi-Unit Development Agreement between Aryes Franchising LLC, a Florida | |
|---|---|---|
| Company | ||
| (the "Franchisor") and(the "Franchisee"). | ||
| Defined terms shall have the meanings set forth in the C3 Wellness | ||
| Sheet. | ||
| Development Area Fee | Total Development Spas | |
| $ | [] | |
| Development Area | ||
| [To be Effective this Schedule Must be Completed and Signed by Franchisor] | ||
| Development Spa Initial Franchise Fee for the First Development Spa | ||
| FIRST DEVELOPMENT SPA: The Development Spa Initial Franchise Fee for the First Development Spa is: |
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' for a multi-unit developer is a key aspect of the agreement, but the specific details are not provided in the excerpt. The FDD mentions that the franchisee must develop, establish, and operate a certain number of spas within the Development Area according to a Development Schedule. The franchisee confirms they've assessed the viability of establishing spa locations within this area and that failure to meet the Development Schedule constitutes a breach of the agreement.
For each C3 Wellness Spa opened in the Development Area, the franchisee must execute the then-current standard Franchise Agreement. This indicates that the Development Area is tied to the franchisee's obligation to open multiple locations, each requiring its own franchise agreement. The initial franchise fee for the first development spa is $45,000, with the fee waived for subsequent spas if the franchisee is not in default of the Development Agreement and other agreements with C3 Wellness Spa.
The Development Information Sheet outlines the Development Schedule, specifying the number of spas to be opened within defined Development Periods. The FDD excerpt includes a table to be completed by the franchisor, specifying the Development Area and the total number of spas to be developed. However, the actual area is left blank in the sample document.
Prospective franchisees should carefully review the Development Schedule and Area to ensure they are feasible and align with their business goals. It is crucial to understand the geographic boundaries of the Development Area, the required number of spas, and the timeline for opening them, as failure to comply can result in a breach of the agreement. A potential franchisee should discuss the specifics of the Development Area with the franchisor.