For C3 Wellness Spa, are Gift Cards included in 'Other Services'?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
If this Franchise Outlet remained in operation throughout the 2023 Calendar Year, it would qualify as an Operational Franchise Outlet during the 2023 Calendar Year.
- (o) Other Services relates to all sales that are not Acupuncture Services, Facial Services, Massage Services, or Medical Services.
Other Services includes: (i) body contouring; (ii) medical spa services; (iii) permanent makeup; (iv) physical therapy; (v) salt therapy; (vi) product sales; (vii) class fees; (viii) IV therapy; (ix) all enhancements; and (x) Gift Cards, so long as such services and products are not covered by a customer's insurance.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–55)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, Gift Cards are included within the definition of 'Other Services'. Specifically, 'Other Services' encompasses sales that are not categorized as Acupuncture Services, Facial Services, Massage Services, or Medical Services.
The FDD clarifies that 'Other Services' includes a variety of offerings such as body contouring, medical spa services, permanent makeup, physical therapy, salt therapy, product sales, class fees, IV therapy, and all enhancements. Importantly, Gift Cards are also included in 'Other Services', provided that these services and products are not covered by a customer's insurance.
For a prospective C3 Wellness Spa franchisee, this means that revenue generated from gift card sales will be classified under the 'Other Services' category when assessing the financial performance of the outlet. This categorization is relevant for understanding the revenue streams and overall financial health of the business, as demonstrated in the provided financial performance representations for company-owned outlets.