factual

For C3 Wellness Spa, who is responsible for selecting the site for the Franchisee's Spa Locations?

C3_Wellness_Spa Franchise · 2024 FDD

Answer from 2024 FDD Document

edule 1 with a specific Spa Location designated and identified in Schedule 1. At the time of executing Schedule 1 and, thereby, approving Franchisee's proposed Spa Location, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, shall designate and determine Franchisee's Designated Territory;

  • (4) If, as of the Effective Date or other appropriate periods after the Effective Date, Franchisee has not selected a proposed Spa Location that is approved by Franchisor but, Franchisee has identified an area in which Franchisee may look to secure a site for the Franchised Business, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, may enter into the Site Selection Acknowledgment attached to this Agreement as Exhibit 3. If executed by Franchisor, within the Exhibit 3 Site Selection Acknowledgment, Franchisor shall designate a geographic area (the "Site Selection Area") within which Franchisor, during the Site Selection Period, shall not, on behalf of any third party, approve any new Spa Location. Franchisee agrees that the Site Selection Acknowledgment does not, in any way, constitute the approval of Franchisor as to any proposed Spa Location, does not constitute or determine Franchisee's final approved Spa Location, does not constitute Franchisor's designation of Franchisee's Designated Territory, does not afford Franchisee any territorial rights in or to the Site Selection Area, and does not extend and/or modify any obligation on the part of Franchisee to timely secure an approved Spa Location in accordance with the terms of this Agreement;
  • (5) At all times, Franchisee's rights in and to the real property and the business premises of Franchisee's Spa Location shall be subordinate and subject to Franchisee's and Franchisee's landlord's agreement to and execution of the Spa Location Lease Agreement Rider attached to this Agreement as Exhibit 4, and Franchisee's agreement and execution of the Collateral Assignment of Lease attached to this Agreement as Exhibit 5;
  • (6) Franchisee may only offer and sell, as applicable, the Approved Spa Products and Services from Franchisee's Spa Location in accordance with the requirements set forth in the Operations Manual and/or the Spa Facility and Management Services from Franchisee's Spa Location in accordance with the requirements set forth in the Operations Manual;
  • (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;

Source: Item 23 — RECEIPTS (FDD pages 59–293)

What This Means (2024 FDD)

According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the franchisee is responsible for selecting the site for their spa location. However, the franchisor, C3 Wellness Spa, must approve the proposed location. If the franchisor approves a site selection area, they will designate a geographic area where they will not approve any new spa locations for third parties during the site selection period.

C3 Wellness Spa requires the franchisee's rights to the real property and business premises to be subject to the franchisee and landlord's agreement and execution of the Spa Location Lease Agreement Rider. This agreement is attached to the Franchise Agreement as Exhibit 4, along with the franchisee's agreement and execution of the Collateral Assignment of Lease attached as Exhibit 5.

Before a franchisee can develop a C3 Wellness Spa, they must execute the current standard Franchise Agreement. This agreement must be executed before the franchisee executes a lease or purchase agreement for the spa location, subject to the franchisor's approval. Alternatively, the agreement must be signed six months before the spa is scheduled to open, according to the Development Schedule.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.