How often is the POS System fee paid by C3 Wellness Spa franchisees?

Question

Accepted Answer

|  |  |  |  |
|---|---|---|---|
| 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. |
| Local Marketing (Note 5) | Minimum of 2% of Gross Sales per month | As incurred | You must spend not less than 2% of your Gross Sales each calendar month on pre-approved marketing within your designated territory. |
| Security System Fees (Note 6) | $50 per month | Monthly as invoiced | Paid with the first royalty payment of each month via ACH or paid directly to vendor. We have the right to increase the fee based on supplier pricing increases and introduction of new technology. |
| POS System (Note 6) | Up to $3,250 per month | Monthly as invoiced | Monthly license for point of sale systems. Paid with the first royalty payment of each month via ACH or paid directly to vendor. We have the right to increase the fee based on supplier pricing increases and introduction of new technology.

Source: Item 6 — OTHER FEES (FDD pages 16–21)

How often is the POS System fee paid by C3 Wellness Spa franchisees?

Answer from 2024 FDD Document

What This Means (2024 FDD)


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.
Local Marketing (Note 5)	Minimum of 2% of Gross Sales per month	As incurred	You must spend not less than 2% of your Gross Sales each calendar month on pre-approved marketing within your designated territory.
Security System Fees (Note 6)	$50 per month	Monthly as invoiced	Paid with the first royalty payment of each month via ACH or paid directly to vendor. We have the right to increase the fee based on supplier pricing increases and introduction of new technology.
POS System (Note 6)	Up to $3,250 per month	Monthly as invoiced	Monthly license for point of sale systems. Paid with the first royalty payment of each month via ACH or paid directly to vendor. We have the right to increase the fee based on supplier pricing increases and introduction of new technology.