When is the Initial Franchise Fee considered fully earned by C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement
When you sign a Franchise Agreement, you will pay to us a non-refundable initial franchise fee in the amount of $45,000 (the "Initial Franchise Fee"). The Initial Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises that we offer through
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the initial franchise fee of $45,000 is considered fully earned by C3 Wellness Spa upon payment. This fee is non-refundable and must be paid when signing the Franchise Agreement.
For prospective franchisees, this means that C3 Wellness Spa does not offer refunds of the initial franchise fee once it is paid. This is a standard practice in the franchise industry, as the fee compensates the franchisor for the initial costs of granting the franchise, including evaluating the franchisee, providing training, and setting up the franchisee with the necessary resources.
For franchisees considering a Multi-Unit Development Agreement, the initial franchise fee for the first spa is $45,000. The Development Area Fee is $40,000 for the second spa. If the agreement authorizes the development of three to five spas, the Development Area Fee is $40,000 for the second spa and $35,000 for each additional spa beyond the second. The initial franchise fee is waived for each additional spa beyond the first authorized by the Development Agreement.