What is the minimum renewal fee for a C3 Wellness Spa franchise?
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. |
| Transfer | Greater of 50% of the then current franchise fee payable by a franchisee who is new to the system or $22,500 | On demand | After our approval, but prior to execution of final transfer agreements and authorization. |
| Renewal | Greater of 50% of the then current franchise fee payable by a franchisee who is new to the system or $22,500 | On signing renewal Franchise Agreement | Payable if we approve your renewal request and upon signing our then current Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the renewal fee is the greater of 50% of the then-current franchise fee for new franchisees or $22,500. This fee is payable if C3 Wellness Spa approves the renewal request and upon signing the then-current Franchise Agreement.
For a prospective C3 Wellness Spa franchisee, this means that when the time comes to renew their franchise agreement, they will need to pay a renewal fee. The exact amount will depend on which is higher at the time of renewal: half the franchise fee being charged to new franchisees at that time, or the fixed amount of $22,500.
This renewal fee is a standard practice in franchising, intended to compensate the franchisor for the continued use of their brand, systems, and support during the renewed term. Franchisees should factor this potential cost into their long-term financial planning. It is important to note that the renewal is contingent upon C3 Wellness Spa's approval and signing their then-current Franchise Agreement, which may have terms different from the original agreement.