How might C3 Wellness Spa identify the Designated Territory granted to 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 franchisor will grant a franchisee the right to develop and operate one Spa Location Franchise at a specific Spa Location. Once C3 Wellness Spa approves a site, they will designate an area around it as the franchisee's Designated Territory.
The size of the Designated Territory will generally be the smaller of two options: 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. However, if the Spa is located within a shopping mall or similar facility with a captive market, the Designated Territory may be limited to the physical boundaries of that mall or facility. C3 Wellness Spa retains some flexibility in determining the territory's boundaries.
Depending on demographics and geography, C3 Wellness Spa may designate the territory with the Spa located at the center, or elsewhere within the Designated Territory. The FDD specifies that C3 Wellness Spa may identify the Designated Territory by zip code, boundary streets, highways, county lines, designated market area, and/or other recognizable demarcations. This means a franchisee's territory could be defined using a variety of common geographic and demographic identifiers.
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 the franchisee is not in default, 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 as to their Reserved Rights.