Does the Lease Agreement Rider for C3 Wellness Spa specify how the 'Leased Premises' must be used?
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)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, if a franchisee leases their spa location, they must try to get the landlord to sign the Lease Agreement Rider, which is attached as Exhibit 4 to the Franchise Agreement. If the landlord refuses to sign the Lease Agreement Rider in substantially the same form as Exhibit 4, C3 Wellness Spa has grounds to refuse to approve the franchisee's proposed spa location.
This requirement ensures that C3 Wellness Spa maintains control over the use of the leased premises. By requiring the Lease Agreement Rider, C3 Wellness Spa can protect its brand standards and ensure that the location is suitable for operating a C3 Wellness Spa franchise.
Prospective franchisees should understand that securing an approvable location and the landlord's cooperation are critical steps in the franchise process. The franchisee bears the responsibility of finding a suitable location and negotiating the lease terms, including the Lease Agreement Rider. The franchisor's approval of the location does not constitute a warranty of any kind, other than that the franchisor does not object to the proposed location.