What is the purpose of modifying the former C3 Wellness Spa location after termination?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (7) Except in the event an authorized transferee continues to operate Franchisee's former Spa at Franchisee's Spa Location subsequent to a Transfer, at Franchisee's sole cost and expense: (a) modify and alter Franchisee's former Spa, Franchisee's former Spa Facility, and Franchisee's Spa Location, as reasonably necessary or otherwise required by Franchisor, to ensure that Franchisee's Spa Facility and Franchisee's Spa Location have been completely de-identified and differentiated from its former appearance to prevent any confusion by the public as to the continued existence of a Spa at the Spa Location; (b) remove from Franchisee's Spa Facility and Franchisee's Spa Location all distinctive physical and structural features identifying a Spa and all distinctive signs, trade dress and emblems associated with the System including, without limitation, signs, trade dress, and emblems bearing the Licensed Marks; and (c) make specific additional changes to Franchisee's Spa Facility and Franchisee's Spa Location as Franchisor reasonably requests for the purpose of completely de-identifying Franchisee's former Spa.
Franchisee shall immediately initiate the foregoing actions and complete such actions within the period of time designated by Franchisor, and Franchisee agrees that Franchisor and/or Franchisor's designated agents may enter the premises of Franchisee's Spa Facility and Franchisee's Spa Location at any time to make foregoing alterations at Franchisee's sole risk and expense.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, if a franchisee's spa is not transferred to an authorized party after termination, the franchisee is responsible for modifying the former spa location. The purpose of these modifications is to completely de-identify and differentiate the location from its previous appearance as a C3 Wellness Spa. This is to prevent any public confusion about whether a C3 Wellness Spa is still operating at that location.
The franchisee is responsible for covering all costs associated with these modifications. The required actions include altering the spa facility to remove any distinctive features, signs, trade dress, and emblems associated with the C3 Wellness Spa system, including the brand's licensed marks. The franchisor can also request additional specific changes to further de-identify the former spa.
C3 Wellness Spa requires the franchisee to begin these actions immediately and complete them within the timeframe specified by the franchisor. The franchisor or their agents have the right to enter the premises to make these alterations at the franchisee's expense. This ensures that the location no longer represents the C3 Wellness Spa brand, protecting the brand's image and preventing potential consumer confusion.