Does the Lease Agreement Rider for C3 Wellness Spa contain any geographic limitations?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee leases Franchisee's Spa Location, Franchisee must use Franchisee's best efforts to ensure that the landlord signs the Lease Agreement Rider that is attached to this Agreement as Exhibit 4. If Franchisee's landlord refuses to sign the Lease Agreement Rider in substantially the same form as the attached Exhibit 4, such refusal may constitute grounds upon which Franchisor refuses to approve Franchisee's proposed Spa Location.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Lease Agreement Rider for C3 Wellness Spa is mentioned as Exhibit 4, and the franchisee must try to get the landlord to sign it. However, the document does not specify whether the Lease Agreement Rider contains geographic limitations.
While the FDD does not explicitly state that the Lease Agreement Rider includes geographic limitations, it does mention a "Site Selection Area" that the franchisor agrees not to grant to another franchisee for a limited time of 60 calendar days from the Site Selection Acknowledgment Date. This area is to be completed by the franchisor. However, the document emphasizes that this Site Selection Area is not an operating territory and does not grant any territorial rights.
To fully understand any geographic limitations related to the lease or franchise operations, a prospective C3 Wellness Spa franchisee should ask the franchisor directly about the contents of Exhibit 4, the Lease Agreement Rider, and clarify whether it includes any clauses that could restrict the spa's location or customer reach. They should also inquire about the criteria used to define the Site Selection Area and how it impacts their ability to operate and market their franchise.