What is the estimated range for the initial retail inventory investment for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
MENT**
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 | A
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 consists of branded C3 Wellness retail products that franchisees must purchase from C3 Wellness Spa or its affiliates before opening their location.
This initial retail inventory is intended as a starting supply for the C3 Wellness Spa location. The FDD notes that franchisees will need to replenish this inventory regularly based on sales volume. This means that franchisees should factor in ongoing inventory costs as part of their operating expenses.
The initial retail inventory investment is due as billed and as incurred and is payable to suppliers. Prospective franchisees should carefully consider their anticipated sales volume and customer demand to manage their inventory effectively and ensure they have sufficient stock to meet customer needs without overspending on initial supplies.