For a C3 Wellness Spa franchise, who benefits from the utilization of the digital media assignment?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that Digital Media and/or Published Content, if permitted by Franchisor, must be approved by Franchisor prior to publication or use in any form. Digital Media and Published Content that is approved by Franchisor or that otherwise is acceptable to Franchisor as meeting Franchisor's standards shall be owned by Franchisor. As between Franchisor and Franchisee, any and all interest and right in or to the Digital Media and/or Published Content shall, at all times, be and is the exclusive property of Franchisor both during the Term of this Agreement and upon the expiration or termination of this Agreement. Franchisee agrees that the System Website and all improvements and modifications made to the System Website, Digital Media, and Published Content is and shall be the exclusive property of Franchisor. During the Term of this Agreement and subject to Franchisee's compliance with the terms and conditions of this Agreement, the System Website, shall include information related to the Franchised Business as shall be determined and designated by Franchisor in Franchisor's Reasonable Judgment. Franchisee agrees that in the event of the termination of this Agreement, for any reason, that the accounts related to all telephone numbers associated with the Franchised Business and all rights in and to the telephone numbers associated with the Franchised Business, shall, at Franchisor's election, be transferred to Franchisor.
Without limitation to the foregoing, Franchisee shall, upon the request of Franchisor, execute and deliver to Franchisor the Assignment of Telephone Numbers and Digital Media Accounts attached to this Agreement as Exhibit 6. Upon the request of Franchisor, Franchisee shall execute, update, and/or re-execute the Assignment of Telephone Numbers and Digital Media agreement upon the request of Franchisor. As between Franchisor and all third parties, Franchisee does hereby represent and acknowledge that such third party is authorized to rely on the Assignment of Telephone Numbers and Digital Media agreement, irrespective of any dispute and/or controversy between Franchisor and Franchisee and irrespective of any contrary instructions of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the franchisor benefits from the digital media assignment. The document states that any Digital Media and Published Content approved by the franchisor, or otherwise acceptable as meeting their standards, becomes the franchisor's property. This includes the System Website and any improvements or modifications made to it.
Specifically, the franchisee agrees that all interest and rights to the Digital Media and Published Content are the exclusive property of the franchisor, both during the term of the agreement and upon its expiration or termination. This means that C3 Wellness Spa maintains control over the brand's online presence and marketing materials.
Furthermore, upon termination of the Franchise Agreement, the franchisor has the option to take control of all telephone numbers associated with the franchised business. The franchisee is required to execute and deliver the Assignment of Telephone Numbers and Digital Media Accounts to the franchisor, and third parties are authorized to rely on this assignment regardless of any disputes between the franchisor and franchisee. This ensures that C3 Wellness Spa can maintain a consistent brand identity and customer communication channels even after a franchise agreement ends.