For what purposes may C3 Wellness Spa use the Brand Development Fund?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System.
Our company and/or affiliate owned Spas may but are not required to contribute to the Brand Development Fund.
The Brand Development Fund will maintain unaudited financial records detailing its expenditures and will make available to you, no more frequently than one time in any 12 month period, an unaudited accounting of how monies contributed to the Brand Development Fund were spent each year.
We are not required to segregate the Brand Development Fund from our general operating funds
and we are not a fiduciary or trustee of the Brand Development Fund. The Brand Development Fund will not be used to directly promote your Spa or the marketing area in which your Spa will be located. (Franchise Agreement, Article 9.A.). We may use the Brand Development Fund to develop and test various media and technologies for potential use and/or improvement of the operations of Spas and the marketing of Spas. These technology developments and/or improvements may relate, among other things, to our website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Spas. You may or may not benefit from these technology developments and improvements. The Brand Development Fund will be uniformly imposed upon all franchisees. (Franchise Agreement, Article 9.A.).
We may use the Brand Development Fund to compensate ourselves for administrative fees associated with managing the Brand Development Fund and for our internal employee salaries, expenses and overhead associated with or reasonably allocated to managing the activities of the Brand Development Fund and performing services on behalf of the Brand Development Fund including, but not limited to, directing, developing and managing media of the Brand Development Fund. We will not use the Brand Development Fund to directly market the sale of Spas, but may do so indirectly by requiring and including information as to the availability of Spa franchises for sale and contact information for franchise inquiries on and within advertising, marketing and brand development materials, including the System website, developed with the Brand Development Funds.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–38)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the Brand Development Fund can be used for several purposes related to marketing, advertising, and development of the C3 Wellness Spa system. The fund may be used for market studies, research, service and product development, testing, and advertising and public relations services. This includes the creation and printing of advertising and marketing materials, advertising copy and commercials, and the costs associated with tracking, agency fees, and administrative tasks related to advertising and public relations. C3 Wellness Spa can also use the fund to purchase media placements, advertising time, and public relations materials at the national, regional, or other levels.
C3 Wellness Spa also has the discretion to use the Brand Development Fund to compensate themselves for administrative fees associated with managing the fund, including salaries, expenses, and overhead for employees involved in directing, developing, and managing media. While the fund will not be used to directly market the sale of C3 Wellness Spa franchises, the company may indirectly include information about franchise availability and contact details in advertising and marketing materials developed with the fund.
It's important to note that C3 Wellness Spa is not required to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the fund. Franchisees contribute to this fund, with a weekly sum not to exceed 3% of weekly Gross Sales (currently 1% of Gross Sales) or $2,300 per week. C3 Wellness Spa may or may not require its affiliate-owned spas to contribute to the Brand Development Fund. The fund will maintain unaudited financial records detailing its expenditures, and an unaudited accounting of how the monies were spent each year will be made available to franchisees no more than once in any 12-month period.