To whom are lease deposit payments made for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
MENT**
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/o |
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, lease deposit payments are made directly to the landlord. The FDD states that franchisees must operate their C3 Wellness Spa from a commercial retail location that is approved by C3 Wellness Spa and complies with all state and local laws.
The FDD estimates that the initial lease deposit will be equal to three months of rent payments. For a prospective C3 Wellness Spa franchisee, this means they will need to negotiate the lease terms, including the deposit amount, directly with the landlord. The actual amount of the lease deposit can vary significantly based on factors such as the location of the spa and the franchisee's negotiation skills.
It is important to note that the lease deposit estimate provided in the FDD does not include the purchase of real property, should a franchisee elect to purchase the real property for their C3 Wellness Spa location. Franchisees should consult with legal and financial advisors to review any lease agreements and understand the full financial implications of leasing or purchasing a location.