What is the 'Franchise Agreement' referred to in the context of a C3 Wellness Spa development agreement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Franchise Agreement" refers to and means Franchisor's individual unit C3 Wellness Franchise Agreement as designated and determined by Franchisor from time to time.
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.
Franchisee agrees that pursuant to the terms of each respective Franchise Agreement respecting and/or concerning the Development Area and/or this Agreement, that nothing contained in this Agreement shall obviate and/or reduce Franchisees obligations as set forth in each respective Franchise Agreement including, without limitation, Franchisees obligations, respectively, to pay royalty and all other fees in accordance with each respective Franchise Agreement. Nothing contained in this Agreement shall modify, reduce or mitigate Franchisee's obligations to Franchisor. The only fee and right contained in the Franchise
$45,000, payable and due upon execution of the applicable Franchise Agreement for the First Development Spa.
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.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the 'Franchise Agreement' refers to the individual unit C3 Wellness Spa Franchise Agreement, as designated and determined by the Franchisor from time to time. This agreement is the standard franchise agreement that a franchisee must execute for each C3 Wellness Spa they develop and open within their designated Development Area.
For each C3 Wellness Spa opened in the Development Area, the franchisee must sign the then-current standard Franchise Agreement. This agreement must be executed before the franchisee executes a lease or purchase agreement for the spa location, subject to the Franchisor's approval, or six months before the spa is scheduled to open, according to the Development Schedule.
The franchisee is obligated to fulfill all requirements outlined in each Franchise Agreement, including the payment of royalties and other fees. The Development Agreement does not reduce or eliminate these obligations. The initial franchise fee for the first Development Spa is $45,000, payable upon execution of the Franchise Agreement. However, the initial franchise fee is waived for each additional Development Spa, provided the franchisee is not in default of the Development Agreement or any other agreement with the Franchisor.