What is the relationship between the 'Spa Location' and the 'Licensed Marks' for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
"Franchisee's Spa Location" refers to and means the location of Franchisee's Spa Facility, from which Franchisee operates the Franchised Business.
"Licensed Marks" refers to and means the trademarks, service marks, emblems and indicia of origin, including the "C3 Wellness" trademark, the C3 Wellness logo, Trade Dress, and other trade names, service marks, trademarks, logos, slogans and designs authorized by us in connection with the identification of Spa Location Franchises and the Approved Spa Products and Services, provided that such trade names, trademarks, service marks, logos and designs are subject to modification, replacement and discontinuance by us in our Reasonable Business Judgment.
- (7) The Spa operated at Franchisee's Spa Facility shall only offer the Approved Spa Products and Services under the Licensed Marks, exclusively utilizing the System Supplies and in compliance with Franchisor's requirements and specifications as set forth in the Operations Manual;
"Spa" shall have the meaning defined in the "Recitals" section of this Agreement and is further supplemented, as follows: the term "Spa" shall further refer to and mean a business that operates at a Spa Location from which the Approved Spa Products and Services, under the Licensed Marks, are offered and provided to customers in accordance with the terms of this Agreement and the requirements of the System and/or a Spa Location from which the Approved Spa Products and Services are required to be offered and provided.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, a franchisee's spa location is intrinsically linked to the brand's licensed marks. The 'Spa' must operate at a 'Spa Location' and offer 'Approved Spa Products and Services' under the 'Licensed Marks'.
C3 Wellness Spa defines "Licensed Marks" as the trademarks, service marks, emblems, and indicia of origin, including the "C3 Wellness" trademark and logo, that the franchisor authorizes for identifying Spa Location Franchises and their approved products and services. However, these marks are subject to modification, replacement, and discontinuance by C3 Wellness Spa based on their reasonable business judgment.
Furthermore, the franchisee is obligated to offer only approved spa products and services under the licensed marks, using exclusively the system supplies and adhering to the franchisor's requirements as detailed in the operations manual. This means a franchisee cannot operate a C3 Wellness Spa without utilizing the brand's trademarks and other intellectual property at their designated location. The franchisor also retains the right to modify or discontinue these licensed marks, which could impact the franchisee's branding and marketing efforts.