Does the C3 Wellness Spa FDD include a Multi-Unit Development Agreement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Development Spa Initial Franchise Fee for Other Development Spas | |
|---|---|
| OTHER AUTHORIZED DEVELOPMENT SPAS: Provided that Franchisee is not in default of the terms of | |
| this C3 Wellness Multi-Unit Development Agreement (including but not limited to the Development Schedule set | |
| forth below) and that neither Franchisee nor Franchisee’s affiliates are in default of any Franchise Agreement or | |
| other agreement with Franchisor, the Development Spa Initial Franchise Fee for each additional Development | |
| Spa (over and above the First Development Spa), is: $0 (Waived), payable at the time of signing the Franchise | |
| Agreement for each Development Spa. |
Amendments to the Aryes Franchising LLC Franchise Agreement and Multi-Unit Development Agreement:
In recognition of the requirements of California Franchise Investment Law, California Corporations Code Sections 31000 through 31516, the undersigned agree to the following modifications to the Aryes Franchising LLC Franchise Agreement (the "Franchise Agreement") and Aryes Franchising LLC Multi-Unit Development Agreement ("Multi-Unit Development Agreement"), if signed by Franchisor and Franchisee, as follows:
For each C3 Wellness owned, developed and opened for business by the Franchisee in the Development Area, Franchisee must execute Franchisor's then current standard Franchise Agreement. A then current standard Franchise Agreement must be executed by the Franchisee for each and every Development Spa on or before the earlier of: (a) the date Franchisee (subject to Franchisor's approval of the Spa Location) executes a lease for the Spa Location for each respective Development Spa; (b) the date Franchisee (subject to Franchisor's approval of the Spa Location) enters into a purchase agreement for the real estate for the Spa Location for each respective Development Spa; or (c) six months prior to the date that each respective Development Spa must be open and in operation pursuant to the Development Schedule.
The Development Schedule is set forth in the Development Information Sheet.
Franchisee agrees that, as to the Development Spas, Franchisee shall meet the requirements of the Development Schedule including, without limitation, requirements as to the number of Development Spas that must be timely developed, established, open, and in operation by Franchisee within the Development Area and as to each respective Development Period.
Franchisee agrees and represents that it has conducted its own independent investigation and analysis of the prospects for the establishment of Spa Location Franchises within the Development Area, that Franchisee approves of the Development Schedule as being reasonable and viable, and that Franchisee recognizes that failure to achieve the results described in the Development Schedule will constitute a material breach of this Agreement with time being of the essence.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
Yes, the 2024 C3 Wellness Spa Franchise Disclosure Document (FDD) includes information regarding a Multi-Unit Development Agreement. The document references a "C3 Wellness Multi-Unit Development Agreement" and discusses terms related to franchisees developing multiple spa locations. This agreement outlines the obligations and expectations for franchisees who commit to opening more than one C3 Wellness Spa.
The FDD specifies that the Development Spa Initial Franchise Fee for each additional spa beyond the first is $0 (waived), provided the franchisee is not in default of the Multi-Unit Development Agreement. This waiver is contingent on adherence to the Development Schedule and compliance with all agreements with C3 Wellness Spa. The Development Schedule, detailed in the Development Information Sheet, sets forth the timeline and requirements for opening multiple spas within the designated Development Area.
The Multi-Unit Development Agreement also requires franchisees to execute C3 Wellness Spa's standard Franchise Agreement for each spa they develop. This must occur before the franchisee executes a lease or purchase agreement for the spa location, or six months prior to the spa's scheduled opening date. The franchisee must meet the requirements of the Development Schedule, including the number of spas to be developed and opened within specific Development Periods. Failure to meet the Development Schedule constitutes a material breach of the agreement.