What is the estimated range for initial supply 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 the initial supply inventory ranges from $4,000 to $5,700. This inventory includes non-retail supplies such as injectables, fillers, IV Drip supplies, and other items necessary for providing services to customers. Franchisees are required to purchase this initial supply from C3 Wellness Spa or its affiliates.
This initial supply is intended only to get the C3 Wellness Spa location started. The FDD states that franchisees will need to replenish their supply inventory regularly based on their sales volume. This means that a franchisee's ongoing costs for supplies will depend directly on how well their location performs and how much product they use. Effective inventory management will be crucial to maintaining profitability.
Prospective franchisees should carefully consider these initial and ongoing inventory costs when evaluating the C3 Wellness Spa franchise opportunity. It would be prudent to inquire about typical sales volumes for established locations to better estimate future inventory needs and associated expenses. Understanding the supply chain and potential disruptions is also important for budgeting and operational planning.