Can C3 Wellness Spa make modifications to the designated System Supplies?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
(5) Franchisor, in Franchisor's Reasonable Business Judgment, may, from time to time, modify the list of approved brands, suppliers and distributors of System Supplies and approved equipment, supplies and services to be utilized by the Franchised Business and Franchisee shall, after receipt in writing of such modification, not reorder any brand and/or purchase from any supplier or distributor that is no longer designated or approved by Franchisor.
(6) Franchisor reserves the right to designate, from time to time, a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates.
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of such supplier's or distributor's dealings with Franchisee and other franchisees and may use all amounts so received without restriction and for any purpose Franchisor and its affiliates deem appropriate.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, C3 Wellness Spa has the right to modify the list of approved brands, suppliers, and distributors of System Supplies. The modification is based on C3 Wellness Spa's reasonable business judgment. After receiving written notification of such changes, the franchisee must stop reordering any brand or purchasing from any supplier or distributor that C3 Wellness Spa no longer designates or approves.
C3 Wellness Spa also reserves the right to designate a single supplier or distributor for any services, products, equipment, supplies, or materials, including System Supplies. This exclusive designated supplier may be C3 Wellness Spa itself or one of its affiliates, and franchisees would be required to use this designated supplier exclusively.
These stipulations mean that as a C3 Wellness Spa franchisee, you must stay informed about any changes to approved suppliers and be prepared to switch suppliers or distributors as directed by C3 Wellness Spa. Failure to comply with these changes could result in a breach of the franchise agreement. Additionally, C3 Wellness Spa and its affiliates may receive payments from suppliers based on the franchisee's dealings with those suppliers.