How often do C3 Wellness Spa franchisees pay the Brand Development Fund fee?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 C3 Wellness Spa's 2024 Franchise Disclosure Document, franchisees are required to pay the Brand Development Fund fee on a weekly basis. Specifically, the fee is due every Tuesday for the sales week that ended the immediately preceding Sunday.
The Brand Development Fund fee is calculated as a percentage of the franchisee's Gross Sales. While it can be up to 3% of Gross Sales, C3 Wellness Spa currently charges 1% of weekly Gross Sales. However, the FDD stipulates that the Brand Development Fund fee will not exceed $2,300 per week, regardless of the Gross Sales amount.
The Brand Development Fund fee will be automatically debited from the franchisee's bank account through ACH or other means designated by C3 Wellness Spa. This means franchisees must ensure sufficient funds are available in their designated bank account to cover the weekly fee. C3 Wellness Spa retains the right to increase the Brand Development Fund fee up to 3% of Gross Revenues, with the maximum contribution remaining at $2,300 per week.