What is the maximum weekly contribution for the Brand Development Fund for C3 Wellness Spa franchisees?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | |||
| (Note 1) | |||
| Royalty (Notes 2 and 3) | 6% of Gross Sales. Subject to adjustment and to alternative fixed fee royalty structure | Weekly on the Tuesday of each week for sales week ending the immediately preceding Sunday. | Will be debited automatically from your bank account by ACH or other means designated by us. If applicable laws or regulations prohibit a percentage-based royalty, then we may increase the royalty rate or, at our election, charge you a fixed fee royalty as set forth in Note 2. |
| Brand Development Fund (Note 4) | Up to 3% of Gross Sales. Currently 1% of Gross Sales Maximum of $2,300 per week | Weekly on the Tuesday of each week for the preceding week | Will be debited automatically from your bank account by ACH or other means designated by us. We reserve the right to raise to 3% of Gross Revenues, subject to a maximum Brand Development Fund contribution of $2,300 per week. |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, franchisees are required to contribute to a Brand Development Fund. This fund is used for marketing and advertising efforts to promote the C3 Wellness Spa brand. The contribution is up to 3% of gross sales, but is currently set at 1% of gross sales.
However, the FDD stipulates that the Brand Development Fund contribution will not exceed $2,300 per week. This means that even if 3% of a franchisee's gross sales is more than $2,300, the franchisee will only be required to contribute $2,300 to the fund for that week. The payments are made weekly on the Tuesday of each week for the preceding week and will be debited automatically from the franchisee's bank account.
It's important to note that C3 Wellness Spa reserves the right to raise the contribution to 3% of gross revenues, subject to the $2,300 per week maximum. This provides C3 Wellness Spa with the flexibility to increase marketing efforts if needed, while also providing a cap on the financial burden for franchisees. Prospective franchisees should factor this potential increase into their financial planning.