Does C3 Wellness Spa make its procedures or criteria for approving suppliers available to its franchisees?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
ay, in our discretion, withhold our approval. We do not make our procedures or criteria for approving suppliers available to our System franchisees, except that when evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System. If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval.
The Corporate Practice of Medicine Doctrine restricts layperson-franchisees from dictating the medical equipment and supplies to be used in the operation of the Franchised Business.
We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers, to represent approximately 75% - 85% of your total purchases and leases in establishing the Franchised Business and approximately 35% - 45% of the on-going operating expenses of the Franchised Business. As described below in more detail, we currently require that you purchase or lease the following source restricted goods and services:
1.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the company does not make its procedures or criteria for approving suppliers available to its franchisees. However, when evaluating a supplier, C3 Wellness Spa considers whether the supplier can meet their standards, specifications, and production requirements, as well as their quality control. They also consider whether C3 Wellness Spa or its affiliates are the exclusive supplier of the item and whether the supplier's approval will advance the overall interests of the system. C3 Wellness Spa retains the right to revoke approval of a previously approved supplier if their standards fall below designated standards.
If a C3 Wellness Spa franchisee wants to purchase or lease a source-restricted item from a supplier not already approved, they must submit a written request for approval and any additional information requested by C3 Wellness Spa. The company may charge a fee to cover the costs of reviewing the alternate supplier, product, or service. C3 Wellness Spa may request samples for testing, documentation for evaluation, and may also require an inspection of the supplier's facilities.
C3 Wellness Spa will notify the franchisee of their decision within 60 days of receiving the written request and all required information. C3 Wellness Spa retains the discretion to withhold approval. This process ensures that all suppliers meet the standards and specifications deemed necessary for the brand, even though the specific procedures and criteria are not disclosed to franchisees.