What is the Management Service fee charged by C3 Wellness Spa, and when is it invoiced?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Supplier Review | Varies | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
|---|---|---|---|
| Costs, expenses, and legal fees | Costs incurred by us | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the Franchise Agreement or a termination of the Franchise Agreement. |
| Management Service | 20% of Gross Sales (plus our actual costs and expenses) | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager or other reason. |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, a Management Service fee is applicable if C3 Wellness Spa elects to manage the franchised business under specific circumstances. These circumstances include the franchisee's death, disability, failure to have the business managed by an authorized Managing Owner or Manager, or other reasons determined by C3 Wellness Spa.
The Management Service fee is 20% of Gross Sales, in addition to C3 Wellness Spa's actual costs and expenses incurred during the management period. This fee covers the expenses and efforts of C3 Wellness Spa in overseeing the business operations during the franchisee's absence or inability to manage the business effectively.
The Management Service fee is invoiced to the franchisee as needed. This means that the franchisee will receive an invoice detailing the amount due, which includes the 20% of Gross Sales and any additional costs and expenses incurred by C3 Wellness Spa. The franchisee is responsible for paying the invoiced amount according to the terms specified by C3 Wellness Spa.