How might C3 Wellness Spa identify the Designated Territory for a franchisee?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
f distribution or competitive brands that we control.
Grant of Territory
Once you identify a site that we approve for your Spa Location we will designate an area around your site as your designated territory (the "Designated Territory"). While there is no minimum size for a designated territory, the scope and size of the area comprising your Designated Territory will, generally, be the smaller of a distance of two miles from the Spa Location in all directions travelable by road or, a territory encompassing a population of 10,000 people as of the date of the Franchise Agreement. If your Spa is located within a shopping mall or a similar facility with a captive market, your Designated Territory may be limited to the physical boundaries of the mall or facility. Depending on the demographics and geography we may designate your Designated Territory where your Spa is located at the center of the Designated Territory or where your Spa is located elsewhere within the Designated Territory. We may identify your Designated Territory by zip code, boundary streets, highways, county lines, designated market area, and/or other recognizable demarcations.
Relocation
Your right to relocate your Spa is not guaranteed and approval of a request by you to relocate your Spa is completely at our discretion. We evaluate relocation requests on a case-by-case basis and consider factors such as operational history, the location of other Spas, our expansion plans, the designated territory, demographics and other factors that, at the time of a relocation request, are relevant to us.
Establishment of Additional Spas
You do not have the right to establish additional Spas unless you sign a Multi-Unit Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the Designated Territory is the area around the franchisee's approved Spa Location. The size of this territory is generally the smaller of two options: a two-mile radius from the Spa Location, travelable by road, or an area encompassing a population of 10,000 people as of the date of the Franchise Agreement. For Spas located within shopping malls or similar facilities with a captive market, the Designated Territory may be limited to the physical boundaries of that mall or facility.
The FDD specifies that C3 Wellness Spa may designate the Designated Territory with the Spa at the center, or elsewhere within the territory, depending on demographics and geography. The territory's boundaries may be identified using various methods, including zip codes, boundary streets, highways, county lines, designated market areas, or other recognizable demarcations. This means a franchisee's territory could be defined using a combination of geographical and demographic factors.
It is important to note that the franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that C3 Wellness Spa owns, or from other channels of distribution or competitive brands that C3 Wellness Spa controls. However, C3 Wellness Spa states that during the term of the Franchise Agreement, provided that the franchisee is not in default of their obligations, C3 Wellness Spa will not establish or open, nor grant another franchisee the right to establish or open a C3 Wellness Spa at a Spa Location within the franchisee's Designated Territory, except for C3 Wellness Spa's Reserved Rights.