Is C3 Wellness Spa responsible for owning or leasing the real property for my Spa Location?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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Site Selection
Although you are responsible for selecting a site for your Spa Location you must obtain our approval of your Spa Location. Generally, we do not own or lease the real property that will serve as your Spa Location and you are responsible for all costs and expenses in locating and evaluating proposed sites for your Spa Location and the demographic data associated with your proposed sites. Before you enter into a lease or other agreement for your Spa Location you must obtain our approval. We will provide you with site selection guidelines. If your Franchise Agreement specifies and designates a Designated Territory, your Spa Location must be located within your Designated Territory at a site that we approve. If you sign a Multi-Unit Development Agreement than each Spa Location developed under the Multi-Unit Development Agreement must be located within the Development Territory and at sites that we approve within the
Development Territory. Your leasehold interests in and to your Spa Location must be subordinated to our rights as set forth in the Lease Agreement Rider attached as Exhibit 4 to the Franchise Agreement and the Collateral Assignment of Lease attached as Exhibit 5 to the Franchise Agreement. We will approve sites for future/additional Spa Locations units under our then current site criteria.
Although there is no specified time limit for us to review the proposed site for your Spa Location, we will do so within a reasonable time period, not exceeding 30 days of our receipt of your written request for our review of a proposed site and your submission to us of the information and documentation that we may request.
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, franchisees are responsible for securing their own locations. C3 Wellness Spa generally does not own or lease the real property for the Spa Location. The franchisee bears all costs associated with finding and assessing potential sites, including gathering demographic data.
Before signing a lease or any agreement for the Spa Location, the franchisee must obtain C3 Wellness Spa's approval. C3 Wellness Spa will provide site selection guidelines to assist in this process. If the Franchise Agreement includes a Designated Territory, the Spa Location must be within that territory and approved by C3 Wellness Spa. Similarly, under a Multi-Unit Development Agreement, each Spa Location must be within the Development Territory and approved by C3 Wellness Spa.
The franchisee's leasehold interests must be subordinated to C3 Wellness Spa's rights, as detailed in the Lease Agreement Rider (Exhibit 4) and the Collateral Assignment of Lease (Exhibit 5) attached to the Franchise Agreement. C3 Wellness Spa will approve sites for future Spa Locations based on their current site criteria. Franchisees must secure an approved Spa Location and lease within 120 days of signing the Franchise Agreement. Failure to do so may result in termination of the agreement without a refund of fees.