To whom are professional fee payments 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 | | Lease Deposits | $13,500 – $18,900 | As arranged | As incurred | Landlord | | (Note 3) | | | | | | Furniture, Fixtures | $30,000 – $60,000 | As arranged | As incurred | Suppliers | | and Equipment | | | | | | (Note 4) | | | | | | Initial Retail | $3,000 – $5,000 | As billed | As incurred | Suppliers | | Inventory (Note 5) | | | | | | Initial Supply | $4,000 – $5,700 | As billed | As incurred | Suppliers | | Inventory (Note 6) | | | | | | Signage | $10,000 – $20,000 | As arranged | As incurred | Suppliers | | (Note 7) | | | | | | Grand Opening | $15,000 – $20,000 | As arranged | As incurred | Suppliers | | Marketing Expenses | | | | | | (Note 8) | | | | | | Computer, Software | $16,261 – $22,766 | As arranged | As incurred | Suppliers | | and Point of Sales | | | | | | System | | | | | | Utility Deposits | $1,056 – $1,478 | As arranged | As incurred | Suppliers | | (Note 9) | | | | | | Insurance Deposits | $164 – $689 | As arranged | As incurred | Insurers | | (Note 10) | | | | | | Travel for Initial | $2,010 – $5,952 | As arranged | As incurred | Airlines, hotels, | | Training (Note 11) | | | | restaurants |
| Professional Fees (Note 12) | $26,500 – $32,000 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
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 professional fees, estimated between $26,500 and $32,000, are paid to attorneys, accountants, architects, and advisors. These fees cover the costs associated with engaging these professionals during the start-up phase of the franchise.
Specifically, C3 Wellness Spa requires franchisees to hire a licensed architect and engineer to prepare architectural and engineering plans that meet brand standards and local regulations. Franchisees will also likely need to pay for the services of an attorney and possibly an accountant for reviewing documents and providing advice during the initial setup.
It is important for prospective C3 Wellness Spa franchisees to budget for these professional fees, as they are a necessary part of establishing the business. The exact amount will vary depending on the professionals hired and the scope of their services. C3 Wellness Spa recommends consulting with professional advisors when evaluating the franchise opportunity, the Disclosure Document, the Franchise Agreement and, if applicable, the Multi-Unit Development Agreement.