How does C3 Wellness Spa review and approve the proposed site for my Spa Location?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
roved, we'll require additional training.
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. In determining whether to approve or disapprove a proposed site for your Spa Location, factors that we take into consideration include: (a) demographic factors, traffic patterns, parking, building structures, visibility and available sign locations; (b) characteristics of the proposed site; (c) the location of your proposed site relative to your overall Designated Territory and proximity to other Spa Location Franchises, if your Designated Territory was previously designated; (d) the location of your proposed site relative to your overall Development Territory and proximity to other Spa Location Franchises, if you signed a Multi-Unit Development Agreement and your Development Territory was previously designated; and (e) whether or not the landlord for the Spa Location approves of our Lease Agreement Rider in substantially the same form as contained in Exhibit 4 of the Franchise Agreement.
Within 120 days of signing your Franchise Agreement you must secure a Spa Location and lease that we approve (Franchise Agreement, Article 3.A). If you do not meet this requirement for any reason, including our disapproval of a proposed site location, we may terminate your Franchise Agreement without refunding any fees to you. It is your obligation to consult with government agencies, architects and legal professionals to evaluate and determine that your Spa Location permits the establishment and operation of the Franchised Business and that you possess the necessary licenses and authority to operate a Spa Location Franchise that offers and sells the Approved Spa Products and Services. (Franchise Agreement, Articles 2, 3, 7 and 16).
Time to Open
You may not open your Spa Location Franchise until you have completed our initial training requirements, obtained the necessary licensing and authorization from state and regulatory agencies within your Designated Territory, obtained and provided us with written proof of the required insurance, have timely secured and developed a Spa Location that we approved, and have met our minimum presale requirements.
We estimate that the length of time between the signing of your Franchise Agreement and opening your Spa Location Franchise to be approximately six months to 12 months. Factors that may affect this estimated time period include: (a) evaluating and selecting a suitable site for your Spa Location that is approved by us; (b) timeliness of your submission to us of information and documentation that we may request in determining whether or not to approve of the site for your proposed Spa Location; (c) length of time undertaken by you to complete our initial training program to our satisfaction; (d) negotiating and obtaining a suitable lease for your Spa Location that is approved by us; (e) obtain third party lender financing, if necessary; and (f) obtaining the necessary licenses for the operation of your Spa Location Franchise. Other factors that may affect this time period include availability of equipment, delays associated with equipment installation and the construction and/or installation of your leasehold improvements and fixtures.
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 selecting a site for their Spa Location, but must obtain C3 Wellness Spa's approval before entering into any lease or agreement. C3 Wellness Spa will provide site selection guidelines to assist in this process. If a Designated Territory is specified in the Franchise Agreement, the Spa Location must be within that territory and approved by C3 Wellness Spa. Similarly, if a Multi-Unit Development Agreement is in place, 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 outlined in the Lease Agreement Rider and Collateral Assignment of Lease. C3 Wellness Spa will approve sites for future locations based on their then-current site criteria.
C3 Wellness Spa does not specify a time limit for reviewing a proposed site but commits to doing so within a reasonable timeframe, not exceeding 30 days from receiving a written request and all required documentation. Factors considered during the review include demographic factors, traffic patterns, parking, building structures, visibility, available sign locations, characteristics of the proposed site, the site's location relative to the Designated or Development Territory, proximity to other C3 Wellness Spa franchises, and whether the landlord approves C3 Wellness Spa's Lease Agreement Rider.
A prospective franchisee must secure an approved Spa Location and lease within 120 days of signing the Franchise Agreement. Failure to meet this requirement, including due to C3 Wellness Spa's disapproval of a proposed site, may result in termination of the Franchise Agreement without a refund of any fees. It is the franchisee's responsibility to consult with government agencies, architects, and legal professionals to ensure the Spa Location permits the establishment and operation of the franchised business and that all necessary licenses and authority are obtained to operate a C3 Wellness Spa franchise offering approved spa products and services.
The estimated time between signing the Franchise Agreement and opening the Spa Location is approximately six to 12 months. Factors influencing this timeline include selecting a suitable and approved site, timely submission of required information for site approval, completing the initial training program, negotiating a suitable and approved lease, securing third-party financing if needed, and obtaining necessary licenses. Other factors include equipment availability, installation delays, and construction of leasehold improvements and fixtures. The Spa Location must open within 12 months of the Franchise Agreement's effective date, or C3 Wellness Spa may terminate the agreement without refunding any fees.