What is the minimum transfer 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. |
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 transfer fee is the greater of 50% of the then-current franchise fee or $22,500. This fee is required to be paid after C3 Wellness Spa approves the transfer but before the final transfer agreements are executed.
For a prospective franchisee, this means that if they decide to sell their C3 Wellness Spa franchise to another party, they will need to pay C3 Wellness Spa a transfer fee. The exact amount will depend on what the current franchise fee is at the time of the transfer. If 50% of the current franchise fee is less than $22,500, the franchisee will need to pay the $22,500 minimum.
This fee covers C3 Wellness Spa's administrative costs and efforts in reviewing and approving the transfer of ownership. It is important for franchisees to factor this potential cost into their long-term financial planning, as it can significantly impact the proceeds from selling their franchise. Franchisees should also be aware that the transfer is contingent on C3 Wellness Spa's approval, and the fee is due before the final transfer is authorized.