How often is the Royalty fee paid by C3 Wellness Spa franchisees?
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. |
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 royalty fee is paid weekly. Specifically, it is due every Tuesday for the sales week ending the immediately preceding Sunday. The standard royalty is 6% of Gross Sales. Payment will be automatically debited from the franchisee's bank account via ACH or other means designated by C3 Wellness Spa.
However, the FDD also states that if any legal restrictions prohibit royalty fees based on Gross Sales related to services performed by an Authorized Care Provider, C3 Wellness Spa may either increase the royalty rate on the permissible portion of Gross Sales or charge a fixed fee royalty.
If C3 Wellness Spa elects to charge a fixed fee royalty, the amount varies depending on the number of weeks the franchise has been operating. For example, during weeks 1 to 52, the fixed fee is $1,000 per week, increasing to $1,750 per week for weeks 53 to 104, and so on, until it reaches $3,750 per week for weeks 313 and each week thereafter. During any renewal term, the fixed fee royalty will not be less than the minimum weekly royalty applicable in weeks 313 and after, and C3 Wellness Spa may increase it, but not by more than $150 per week within each calendar year of the renewal term.