What is the relationship between the 'Spa Management Business' and the 'Spa Location' for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
rvices without violating the Authorized Care Provider Regulation and applicable laws, rules and regulations. At all times Franchisee is responsible for ensuring that, at all times, Franchisee shall comply with Authorized Care Provider Regulations and all other applicable laws, rules, and regulation related to a Spa.
"Spa Location(s)" refers to and means the fixed locations from which Spas are established, operated and managed and from which a Spa Location Franchise is operated. Franchisee's Spa Location must be selected, established, controlled and established by Franchisee in accordance with the terms of this Agreement.
"Spa Location Franchise" shall have the meaning defined in the "Recitals" section of this Agreement and is further supplemented, as follows: the term "Spa Location Franchise" shall refer to and mean the Franchised Business wherein, if permitted by applicable laws, rules and regulations including, but not limited to, Authorized Care Provider Regulation, owns and operates a Spa at a Spa Location in accordance with the terms of this Agreement, the System, and the Operations Manual. At all times Franchisee must directly operate, maintain and control the Spa Location. If, under applicable laws, rules and regulations including, but not limited to, Authorized Care Provider Regulation, Franchisee is not permitted to directly own and operate a Spa then the term Spa Location Franchise shall refer to and mean a Spa Management Business that offers and providers Spa Facility and Management Services in accordance with the terms of this Agreement, the System and the Operations Manual at a Spa Location.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the relationship between the 'Spa Management Business' and the 'Spa Location' is defined by the franchise structure. A C3 Wellness Spa franchisee may operate one of two types of Spa Location Franchises, depending on their qualifications and local regulations. One option is a Spa Location Franchise that directly owns and operates a spa providing approved spa products and services under the C3 Wellness Spa's licensed marks. The other option involves owning and operating a 'Spa Management Business'.
In the latter case, the 'Spa Management Business' provides management, marketing, and spa facility-based services to medical practices and licensed professionals, referred to as 'Authorized Care Providers'. These providers are authorized to offer and provide approved spa products and services at a spa. The 'Spa Location' in this model refers to the physical location or facility where the Authorized Care Providers operate and potentially own the spa. The franchisee, through the 'Spa Management Business', enters into a management agreement with these providers, offering spa facility and management services and licensing the use of C3 Wellness Spa's licensed marks at the spa location.
In essence, if a C3 Wellness Spa franchisee operates a 'Spa Management Business', they are not directly providing spa services. Instead, they are managing the facility and providing support services to authorized healthcare providers who deliver the spa treatments at the 'Spa Location'. The franchisee's role is to ensure the facility meets C3 Wellness Spa standards and to handle the business aspects of the spa, while the authorized providers focus on delivering the actual spa and medical services. The 'Spa Location' is where these services are ultimately provided, under the umbrella of the C3 Wellness Spa brand, facilitated by the franchisee's management services.