What is C3 Wellness Spa's Manager prohibited from doing with respect to the provision of Professional Services?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
"Prohibited Activities" refers to and means any or all of the following: (a) owning and/or having any legal or equitable interest whether, as an individual proprietor or as an owner, partner, member or shareholder of a Corporate Entity or, in any similar capacity, in a Competitive Business (other than owning an interest of 3% or less in a publicly traded company that is a Competitive Business); (b) operating, managing, funding and/or performing services (whether as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or in any similar capacity) for a Competitive Business; (c) diverting or attempting to divert any business or customers from us (or one of our affiliates or franchisees); and/or (d) inducing any customer or client of ours (or of one of our affiliates or franchisees) or of Franchisee to any other person business that is not an C3 Wellness.
"Reasonable Business Judgment" refers to our business judgment and means and relates to any and all decisions, actions and choices made by us concerning or relating to this Agreement, the Franchise Agreement, the System, Spa Location Franchises, Franchisee's Spa Location, and/or the Franchised Business where we undertake or make such decision with the intention of benefitting or acting in a way that could benefit the System including, as examples and without limitation, enhancing the value of the Licensed Marks, increasing customer satisfaction, minimizing potential customer confusion as to the Licensed Marks, determining designated territory markets, minimizing potential customer confusion as to the location of Spa Location Franchises, expanding brand awareness of the Licensed Marks, implementing marketing and accounting control systems, approving products, services, supplies and equipment. Franchisee agrees that when a decision, determination, action and/or choice is made by us in our Reasonable Business Judgment that such decision, determination, action or choice made by us shall take precedence and prevail, even if other alternatives, determinations, actions and/or choices are reasonable or arguably available and/or preferable. Franchisee agrees that in connection with any decision, determination, action and/or choice made by us in our Reasonable Business Judgment that: (a)
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, C3 Wellness Spa defines "Prohibited Activities" as activities that a manager is restricted from performing. These activities include owning or having any legal or equitable interest in a Competitive Business, except for owning 3% or less in a publicly traded company. A Competitive Business is defined as a business similar to a Spa Location Franchise or a spa that offers services like facial treatments, medical spa services, IV vitamin therapy, massage therapy, physical therapy, cosmetic services, topical skin treatments, essential oils, or other spa services.
Additionally, a C3 Wellness Spa manager is prohibited from operating, managing, funding, or performing services for a Competitive Business, whether as an employee, officer, director, manager, consultant, representative, agent, or creditor. They are also barred from diverting or attempting to divert any business or customers from C3 Wellness Spa, its affiliates, or franchisees.
Furthermore, a manager cannot induce any customer or client of C3 Wellness Spa, its affiliates, or franchisees to another business that is not a C3 Wellness Spa. These restrictions ensure that managers remain loyal to the C3 Wellness Spa system and do not use their position to benefit competing businesses or divert customers away from the franchise.