Are non-competition covenants applicable during the term of the franchise for C3 Wellness Spa Multi-Unit Development Agreements?

According to C3 Wellness Spa's 2024 Franchise Disclosure Document, non-competition covenants are not applicable to the Multi-Unit Development Agreement itself during the term of the agreement. However, this does not mean there are no restrictions.

Each individual C3 Wellness Spa Location Franchise developed under the Multi-Unit Development Agreement will be subject to the non-competition covenants outlined in its respective Franchise Agreement. This means that while the overarching development agreement isn't restricted by non-compete terms, each spa location that opens as part of that agreement will have its own set of rules about what the franchisee can and cannot do in terms of competitive business ventures.

This distinction is important for potential multi-unit developers to understand. While they may have broader flexibility at the development agreement level, they must still adhere to the non-competition terms for each C3 Wellness Spa location they operate. These terms could restrict their involvement in other similar businesses within a certain geographic area or require them to maintain confidentiality and non-solicitation.

Therefore, prospective franchisees should carefully review the Franchise Agreement for each spa location to fully understand the scope and limitations of the non-competition covenants. This will help them avoid any potential conflicts or breaches of contract as they develop and operate their C3 Wellness Spa franchises.