When must a C3 Wellness Spa franchisee pay the Supplier Evaluation Fee?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of such supplier's or distributor's dealings with Franchisee and other franchisees and may use all amounts so received without restriction and for any purpose Franchisor and its affiliates deem appropriate.
- (7) If Franchisee proposes or requests that Franchisor consider the approval of products, services, equipment, supplies, suppliers and/or distributors for use in the Franchised Business where such products, services, equipment, supplies, suppliers and/or distributors are not presently, at the time of Franchisee's request, approved for use in the System: (a) Franchisee must provide Franchisor with a written request where Franchisee specifies the product, service, equipment, supply, supplier and/or distributor, the reason for Franchisee's request; (b) shall timely submit to Franchisor such information, reports, specifications, and samples as Franchisor, in Franchisor's Reasonable Business Judgment requests; and (c) shall pay to Franchisor a Supplier Evaluation Fee per requested product, service, equipment, supply, supplier and/or distributor to be considered including, but not limited to, the Supplier Evaluation Fees that Franchisor, in Franchisors Reasonable Business Judgment, establishes and assesses based on, among other things, the administrative costs and time associated with evaluating, assessing and testing the proposed product, service, equipment, supply, supplier and/or distributor including, but not limited to Franchisor's internal employees and independent third parties engaged and/or retained by Franchisor for evaluation and testing.
The foregoing fees and payments shall be paid by Franchisee to Franchisor within 14 days of the date of Franchisor's invoice.
Upon Franchisee's compliance with the foregoing, within 60 days of the completion of all inspections and evaluations, Franchisor shall notify Franchisee of Franchisor's approval or disapproval which shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
Under no circumstance shall the foregoing be construed as implying that Franchisor is required to approve alternative suppliers and Franchisor shall exclusively determine, in Franchisor's Reasonable Business Judgment, the level of evaluation to be conducted by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, a franchisee must pay a Supplier Evaluation Fee if they propose or request that C3 Wellness Spa consider approving products, services, equipment, supplies, suppliers, or distributors not already approved for use in the system.
The franchisee must submit a written request specifying the item, the reason for the request, and any information, reports, specifications, and samples that C3 Wellness Spa requests. The Supplier Evaluation Fee covers the administrative costs and time associated with evaluating, assessing, and testing the proposed product, service, equipment, supply, supplier, or distributor. This includes the costs of C3 Wellness Spa's internal employees and any independent third parties engaged for evaluation and testing.
The franchisee must pay the Supplier Evaluation Fee within 14 days of the date of C3 Wellness Spa's invoice. Within 60 days of completing all inspections and evaluations, C3 Wellness Spa will notify the franchisee of its approval or disapproval, which is determined in C3 Wellness Spa's reasonable business judgment. C3 Wellness Spa exclusively determines the level of evaluation to be conducted and is not required to approve alternative suppliers.