What is the estimated range for lease deposits 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 lease deposits ranges from $13,500 to $18,900. This estimate assumes that the franchisee will lease a commercial retail location for the spa, which must be approved by C3 Wellness Spa and comply with all state and local laws. The typical square footage for a C3 Wellness Spa is approximately 4,000 square feet.
The lease deposit is an amount paid to the landlord when signing the lease, before the C3 Wellness Spa location opens. The FDD notes that the estimate is based on the assumption that the lease deposit will be equal to three months of rent payments. However, the actual amount of the lease deposit is subject to direct negotiation between the franchisee and the landlord.
Several factors can influence the lease deposit amount, including the location of the spa and the franchisee's negotiation skills. The FDD estimate does not include the purchase of real property, should the franchisee choose to buy the spa location instead of leasing. Prospective franchisees should carefully consider these factors and negotiate the lease terms to their best advantage, as lease costs can significantly impact the initial investment and ongoing operational expenses of a C3 Wellness Spa.