To whom are payments for construction and leasehold improvements made for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | When Due | To Whom Payment is Made | |
|---|---|---|---|---|
| Initial Franchise Fee | $45,000 | Lump sum | When Franchise | Us |
| (Note 1) | Agreement is signed | |||
| Construction and Leasehold Improvements (Note 2) | $350,000 – $400,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the payments for construction and leasehold improvements, which range from $350,000 to $400,000, are made to contractors, suppliers, and/or the landlord. These costs are incurred as arranged during the construction and build-out phase of the spa location. This estimate covers the expenses for construction, construction management, and the build-out, excluding furniture, fixtures, and equipment. It also includes flooring, wallpaper, and other specialized décor required by C3 Wellness Spa.
The FDD notes that these estimates assume a typical spa size of approximately 4,000 square feet and that the site is in a "vanilla box" condition, which includes essential utilities and finishes. The estimate does not account for architect fees or other fees charged by licensed professionals other than general contractors and licensed tradesmen, nor does it include any special heating, cooling, or ductwork that a spa might require. Therefore, the actual costs for developing a C3 Wellness Spa may be higher or lower than the provided estimates.
Prospective franchisees should carefully consider these factors and obtain detailed quotes from contractors and suppliers to accurately assess the potential costs for construction and leasehold improvements. Negotiating favorable terms with the landlord is also crucial, as lease deposits and specific build-out requirements can significantly impact the overall investment. Given the wide range in potential costs, thorough due diligence and professional advice are essential before committing to a C3 Wellness Spa franchise.