What is C3 Wellness Spa's Practice's role in overseeing the Manager's actions?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
directly or indirectly, that either Party refer or direct any patients to the other Party. If any legislation, regulation or government policy is passed or adopted, the effect of which would cause either Party to be in violation of such laws due to the existence of any provision of this Schedule B(e), then the Parties agree to negotiate in good faith for a period of 30 days to modify the terms of this Schedule B(e) to comply with applicable law. Should the Parties fail to agree upon modified terms during such 30-day period, either Party may terminate upon notice.
- 1.04. Survival. Upon expiration or termination of this Agreement for any reason, the terms of Section 1.02(d) will survive until all amounts due by Practice are paid in full and/or until Practice's obligations under such provisions are fulfilled; and Section 1.02(b) and (e) will survive for five years.
Schedule B(m) License Agreement
- 1.01. Nonexclusive License. Subject to the terms and conditions of this Agreement, Manager grants to Practice a limited, nonexclusive, nontransferable license to use Manager's Trademark "C3 Wellness" in connection with and in furtherance of the operation of Practice's operations including the use of "C3 Wellness" and in Practice's assumed name at Practice's physical address located at _____________________________________. In partial consideration of Manager's grant of the foregoing rights, Practice covenants with Manager that Practice will not market, advertise, or otherwise operate its business under any name or Trademark(s) other than Manager's Trademark during the Term unless otherwise required by law.
- 1.02. Ownership & Goodwill. Subject to the rights granted in this Agreement, all title to and the rights in the Trademark and the associated goodwill are the exclusive property of Manager and/or its licensor. Practice agrees that its use of any of the Manager's Trademark pursuant to the expressly rights granted under this Agreement will not create any right, title, or interest in or to Manager's Trademark other than as set forth in this Agreement, and that all goodwill associated with Manager's Trademark, including any goodwill generated through Practice's use of the Trademark will belong and inure solely to the benefit of Manager. Practice covenants and agrees that it will not:
- (a) take any action or assist any third party in any action to contest or impair Manager's ownership rights or dilute, tarnish, or infringe the Trademark;
- (b) at any time, dispute or contest the right, title, or validity of the Trademark; or
- (c) attempt to register or use any intellectual property, including any trademarks, service marks, or copyrights similar to the Trademark.
- 1.03. Reservation of Rights Not Granted. Practice agrees that it has no rights in Manager's Trademark except those expressly granted under this Agreement. Any and all rights not granted by Manager under this Agreement are reserved by Manager.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the provided excerpts do not specify the C3 Wellness Spa Practice's direct role in overseeing the Manager's actions. The excerpts focus on the definitions of terms, the relationship between the Manager and the Practice concerning the use of the "C3 Wellness" trademark, and the obligations of the Practice regarding the use of the trademark. The documents outline the nonexclusive license granted to the Practice to use the Manager's trademark and the Practice's agreement to adhere to the Manager's standards for trademark usage. However, there is no mention of oversight responsibilities.
The excerpts discuss the Practice's responsibilities in relation to the C3 Wellness trademark, including proper usage of trademark symbols and cooperation with the Manager to correct any inappropriate uses of the trademark. The Practice must also cease using the "C3 Wellness" name and trademark upon termination of the agreement. These clauses primarily protect the Manager's intellectual property and brand identity.
To fully understand the Practice's role in overseeing the Manager's actions, a prospective franchisee should consult the franchise agreement and related documents for specific clauses detailing supervisory responsibilities, performance evaluations, and any mechanisms for addressing concerns or issues related to the Manager's performance. Further clarification should be sought from the franchisor regarding the operational and managerial structure and the lines of authority between the Practice and the Manager.