What exhibit to the Franchise Agreement contains the Lease Agreement Rider for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not review the terms of the lease for your Spa Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement (the "Collateral Assignment of Lease"). We possess the right to disapprove of a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement. The Lease Agreement Rider is intended to afford us certain rights including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Spa Location.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the Lease Agreement Rider is attached as Exhibit 4 to the Franchise Agreement. C3 Wellness Spa does not review the terms of the lease for the Spa Location but requires the landlord to acknowledge C3 Wellness Spa's rights as specified in the Lease Agreement Rider.
Furthermore, C3 Wellness Spa requires a collateral assignment of the lease, which is attached as Exhibit 5 to the Franchise Agreement. C3 Wellness Spa retains the right to disapprove a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement.
The Lease Agreement Rider is designed to give C3 Wellness Spa certain rights, including the right to be notified if the franchisee defaults on the lease and the potential right for C3 Wellness Spa to enter the premises of the Spa Location. This ensures that C3 Wellness Spa can protect its interests and maintain control over the location and operation of the franchise.