What fees or purchases does the C3 Wellness Spa franchisee authorize to be debited from their account?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
ement, and the Schedules and Exhibits to this Agreement, as executed and, as applicable, constitute the entire, full and complete Agreement between Franchisor and Franchisee concerning the subject matter of this Agreement and supersedes all prior related agreements between Franchisor and Franchisee. The foregoing shall not constitute and does not constitute any disclaimer as to the express representations made by Franchisor in the Franchise Disclosure Document disclosed to Franchisee in connection with this Franchise Agreement.
18.N. ATTORNEY FEES AND EXPENSES
Franchisee agrees that in the event that an arbitrator in any arbitration proceeding and/or, a court of competent jurisdiction shall issue an award, judgment, decision and/or order finding, holding and/or declaring Franchisee's breach of this Agreement than Franchisor shall also be entitled to the recovery of all reasonable attorney fees, costs and expenses associated with and/or related to such arbitration and/or litigation. Said fees, costs and expenses shall include, but not be limited to, attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees and filing fees.
**18.O.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
Based on the 2024 C3 Wellness Spa Franchise Disclosure Document, the franchisee authorizes the franchisor to collect attorney fees and expenses in the event of a breach of the agreement. Specifically, if an arbitrator or court finds the franchisee in breach of the agreement, C3 Wellness Spa is entitled to recover reasonable attorney fees, costs, and expenses related to the arbitration or litigation. These expenses include attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees, and filing fees.
Additionally, the franchisee is responsible for paying an initial franchise fee. The initial franchise fee for the first Development Spa is $45,000, payable upon execution of the Franchise Agreement. For each additional Development Spa beyond the first, the initial franchise fee is $0 (waived), provided the franchisee is not in default of the C3 Wellness Multi-Unit Development Agreement and any other agreements with the franchisor. This fee is payable at the time of signing the Franchise Agreement for each additional Development Spa.
It is important for prospective franchisees to understand these financial obligations and potential liabilities. The obligation to cover attorney fees and expenses in case of a breach could represent a significant financial risk. The initial franchise fee, while waived for additional spas under certain conditions, still requires careful consideration in the overall investment assessment. Franchisees should consult with legal and financial advisors to fully understand the implications of these fees and obligations before signing the agreement.