To whom are initial supply inventory payments made for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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A. Franchise Agreement
| Type of Expenditure | Amount | | When Due | To Whom Payment is Made | |---|---|---|---|---| | | | | | | | | | | | | | | | | | | | Initial Franchise Fee | $45,000 | Lump sum | When Franchise | Us | | (Note 1) | | | Agreement is signed | | | Construction and Leasehold Improvements (Note 2) | $350,000 – $400,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord | | Lease Deposits | $13,500 – $18,900 | As arranged | As incurred | Landlord | | (Note 3) | | | | | | Furniture, Fixtures | $30,000 – $60,000 | As arranged | As incurred | Suppliers | | and Equipment | | | | | | (Note 4) | | | | | | Initial Retail | $3,000 – $5,000 | As billed | As incurred | Suppliers | | Inventory (Note 5) | | | | | | Initial Supply | $4,000 – $5,700 | As billed | As incurred | Suppliers | | Inventory (Note 6) | | | | | | Signage | $10,000 – $20,000 | As arranged | As incurred | Suppliers | | (Note 7) | | | | | | Grand Opening | $15,000 – $20,000 | As arranged | As incurred | Suppliers | | Marketing Expenses | | | | | | (Note 8) | | | | | | Computer, Software | $16,261 – $22,766 | As arranged | As incurred | Suppliers | | and Point of Sales | | | | | | System | | | | | | Utility Deposits | $1,056 – $1,478 | As arranged | As incurred | Suppliers | | (Note 9) | | | | | | Insurance Deposits | $164 – $689 | As arranged | As incurred | Insurers | | (Note 10) | | | | | | Travel for Initial | $2,010 – $5,952 | As arranged | As incurred | Airlines, hotels, | | Training (Note 11) | | | | restaurants |
| Professional Fees (Note 12) | $26,500 – $32,000 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
|---|---|---|---|---|
| Licenses and | $1,038 – $1,453 | As arranged | As incurred | Government |
| Permits (Note 13) | ||||
| Uniforms | $5,000 – $30,000 | As arranged | As incurred | Suppliers, us or our affiliate |
| Additional Funds – | $130,399 – $189,678 | As incurred | Before opening | Employees, suppliers, |
| 3 months |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the initial supply inventory payments are made to suppliers. The initial supply inventory includes non-retail supplies such as injectables, fillers, IV Drip supplies, and other supplies used for providing services to customers. The estimated cost for this initial supply ranges from $4,000 to $5,700.
In addition to the initial supply inventory, C3 Wellness Spa franchisees must also purchase an initial retail inventory, with payments also made to suppliers. This retail inventory is comprised of branded C3 Wellness retail products for sale to customers. The cost for the initial retail inventory is estimated to be between $3,000 and $5,000.
Both the initial retail and initial supply inventories will require ongoing replenishment based on the sales volume at the C3 Wellness Spa location. It is important for prospective franchisees to factor in these ongoing costs when projecting their operating expenses. The FDD also indicates that franchisees may be required to purchase uniforms from suppliers, C3 Wellness Spa, or its affiliates, with costs ranging from $5,000 to $30,000.