In what forms can the C3 Wellness Spa franchise agreement be executed?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
(5) Franchisee pays the Renewal Fee and Franchisee agrees to, signs, and delivers to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current form Spa Franchise Agreement for the Renewal Term (the "Renewal Franchise Agreement");
(6) Franchisee's Owners and their Spouses, respectively, must agree to, sign, and deliver to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current individual guaranty agreements, and, thereby, among other things, individually and jointly guarantee the full and complete performance of the Renewal Franchise Agreement including, but not limited to, payment obligations, non-compete obligations, and restrictive covenants (the "Renewal Ancillary Agreements");
(7) Franchisee and the Owners must, prior to the Renewal Term, undertake and complete, to Franchisor's satisfaction, such additional training, if any, as designated and determined by Franchisor in Franchisor's Reasonable Business Judgment; and
(8) Franchisee and the Owners must agree to, sign, and deliver to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current form of general release whereby Franchisee and Franchisee's Owners shall each fully release and discharge Franchisor, Franchisor's affiliates and it's officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, employees, successors and assigns from any and all claims, causes of action, and suits arising from and/or related to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, there are several instances and conditions under which a franchisee must execute a franchise agreement. For each C3 Wellness Spa that a franchisee develops and opens within a designated development area, the franchisee is required to execute the franchisor's current standard Franchise Agreement. This agreement must be executed on or before the earliest of three conditions: when the franchisee executes a lease for the spa location (subject to the franchisor's approval), when the franchisee enters into a purchase agreement for the real estate of the spa location (again, subject to franchisor's approval), or six months before the spa is scheduled to open according to the Development Schedule. This ensures that each spa operating under the C3 Wellness Spa brand is governed by a current and standardized agreement.
Additionally, the franchisee must sign and deliver the franchisor's current form of the Spa Franchise Agreement for the Renewal Term, known as the "Renewal Franchise Agreement," within 30 days of receiving it from C3 Wellness Spa. Furthermore, the franchisee's owners and their spouses must sign and deliver individual guaranty agreements, referred to as the "Renewal Ancillary Agreements," within the same 30-day timeframe. These guaranty agreements ensure that the owners personally guarantee the performance of the Renewal Franchise Agreement, including payment obligations and non-compete clauses.
Prior to the Renewal Term, franchisees and their owners must also complete any additional training required by C3 Wellness Spa to their satisfaction. They must also agree to, sign, and deliver a general release form within 30 days of receipt, releasing C3 Wellness Spa and its affiliates from any claims related to the agreement. These stipulations ensure that all parties are aligned and legally protected during the renewal process. These agreements collectively ensure that C3 Wellness Spa maintains consistent standards and legal protections across all its franchise locations and throughout the duration of the franchise relationship.