What is the estimated range for initial retail inventory for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the estimated initial investment for retail inventory ranges from $3,000 to $5,000. This inventory includes branded C3 Wellness retail products that franchisees must purchase from C3 Wellness Spa or its affiliates before opening their spa location.
This initial supply is intended to be enough to start operations, but franchisees will need to replenish it regularly based on their sales volume. This means franchisees should factor in ongoing inventory costs as part of their operating expenses. The FDD specifies that the payment for the initial retail inventory is due as billed and as incurred to the suppliers.
Prospective franchisees should carefully consider these inventory costs and factor them into their financial projections. Understanding the demand for retail products at their specific location will be crucial for managing inventory effectively and maintaining adequate stock levels. It would be prudent to inquire about the types of retail products, their pricing, and typical sales volumes to refine their financial planning.