Does C3 Wellness Spa periodically approve suppliers and distributors?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
(4) Franchisor has and will periodically approve suppliers and distributors of the equipment, materials, supplies and products including, but not limited to, System Supplies, that meet Franchisor's standards, specifications, and requirements including, without limitation, standards, specifications, and requirements relating to the equipment and supplies to be utilized by the Franchised Business.
(5) Franchisor, in Franchisor's Reasonable Business Judgment, may, from time to time, modify the list of approved brands, suppliers and distributors of System Supplies and approved equipment, supplies and services to be utilized by the Franchised Business and Franchisee shall, after receipt in writing of such modification, not reorder any brand and/or purchase from any supplier or distributor that is no longer designated or approved by Franchisor.
(6) Franchisor reserves the right to designate, from time to time, a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, C3 Wellness Spa has and will periodically approve suppliers and distributors of equipment, materials, supplies, and products, including System Supplies. These approved suppliers must meet C3 Wellness Spa's standards, specifications, and requirements, especially those related to equipment and supplies used by the Franchised Business.
C3 Wellness Spa retains the right to modify the list of approved brands, suppliers, and distributors of System Supplies and other approved equipment and services. Franchisees must adhere to these modifications and are prohibited from reordering any brand or purchasing from any supplier or distributor that is no longer approved by C3 Wellness Spa after receiving written notice of such changes.
Furthermore, C3 Wellness Spa reserves the right to designate a single exclusive supplier or distributor for any services, products, equipment, supplies, or materials, including System Supplies. This exclusive supplier may be C3 Wellness Spa itself or one of its affiliates, and franchisees would be required to use this designated supplier exclusively. This allows C3 Wellness Spa to maintain quality control and potentially negotiate better pricing, but it also limits the franchisee's autonomy in sourcing supplies.