What does the estimated initial investment for a C3 Wellness Spa franchise include?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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A. Franchise Agreement
| Type of Expenditure | Amount | | When Due | To Whom Payment is Made | |---|---|---|---|---| | | | | | | | | | | | | | | | | | | | Initial Franchise Fee | $45,000 | Lump sum | When Franchise | Us | | (Note 1) | | | Agreement is signed | | | Construction and Leasehold Improvements (Note 2) | $350,000 – $400,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord | | Lease Deposits | $13,500 – $18,900 | As arranged | As incurred | Landlord | | (Note 3) | | | | | | Furniture, Fixtures | $30,000 – $60,000 | As arranged | As incurred | Suppliers | | and Equipment | | | | | | (Note 4) | | | | | | Initial Retail | $3,000 – $5,000 | As billed | As incurred | Suppliers | | Inventory (Note 5) | | | | | | Initial Supply | $4,000 – $5,700 | As billed | As incurred | Suppliers | | Inventory (Note 6) | | | | | | Signage | $10,000 – $20,000 | As arranged | As incurred | Suppliers | | (Note 7) | | | | | | Grand Opening | $15,000 – $20,000 | As arranged | As incurred | Suppliers | | Marketing Expenses | | | | | | (Note 8) | | | | | | Computer, Software | $16,261 – $22,766 | As arranged | As incurred | Suppliers | | and Point of Sales | | | | | | System | | | | | | Utility Deposits | $1,056 – $1,478 | As arranged | As incurred | Suppliers | | (Note 9) | | | | | | Insurance Deposits | $164 – $689 | As arranged | As incurred | Insurers | | (Note 10) | | | | | | Travel for Initial | $2,010 – $5,952 | As arranged | As incurred | Airlines, hotels, | | Training (Note 11) | | | | restaurants |
| Professional Fees (Note 12) | $26,500 – $32,000 | As arranged | As incurred | Attorneys, accountants, architects, advisors | |
|---|---|---|---|---|---|
| Licenses and | $1,038 – $1,453 | As arranged | As incurred | Government | |
| Permits (Note 13) | |||||
| Uniforms | $5,000 – $30,000 | As arranged | As incurred | Suppliers, us or our affiliate | |
| Additional Funds – | $130,399 – $189,678 | As incurred | Before opening | Employees, suppliers, | |
| 3 months | landlord, utility | ||||
| (Note 14) | suppliers | ||||
| Total Estimate | $652,928 – $858,616 | ||||
| (Note 15) | # Explanatory Notes to Item 7 For a Franchise Agre |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, the estimated initial investment for a C3 Wellness Spa franchise covers a range of expenses. These include the initial franchise fee, which is a one-time payment of $45,000 due when the Franchise Agreement is signed. Additionally, the investment covers construction and leasehold improvements, estimated between $350,000 and $400,000, and lease deposits ranging from $13,500 to $18,900. These costs are paid to contractors, suppliers, and the landlord as incurred.
Further, the initial investment encompasses furniture, fixtures, and equipment, with an estimated cost between $30,000 and $60,000, as well as initial retail inventory (between $3,000 and $5,000) and initial supply inventory (between $4,000 and $5,700). Signage costs are estimated to be between $10,000 and $20,000. Franchisees must also budget for grand opening marketing expenses, which range from $15,000 to $20,000, and computer, software, and point of sales systems, estimated between $16,261 and $22,766.
Other components of the initial investment for a C3 Wellness Spa include utility deposits, ranging from $1,056 to $1,478, and insurance deposits, which are estimated between $164 and $689. Travel expenses for the initial training program are also included, with an estimated cost between $2,010 and $5,952 for airlines, hotels, and restaurants. It's important to note that these are just estimates, and actual costs may vary depending on factors such as location, the size of the facility, and specific choices made by the franchisee.
For those considering a Multi-Unit Development Agreement, there is also a Development Area Fee ranging from $40,000 to $145,000, due when the Franchise Agreement and Multi-Unit Development Agreement are signed. The estimated initial investment to open one C3 Wellness Spa franchise ranges from $652,928 to $856,616, based on the estimates provided in the Franchise Agreement. These figures do not include interest, financing charges, or compensation for the franchisee or owners.