What rights does the franchisor of C3 Wellness Spa have regarding the franchisee's advertising materials?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (3) Franchisee's marketing must be directed toward and contained within Franchisee's Designated Territory. To the extent that Franchisee's marketing efforts involve a marketing medium that is targeted toward Franchisee's Designated Territory but reaches outside of and beyond Franchisee's Designated Territory then Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right to approve or disapprove of such marketing solely on the basis of the distribution reach of such marketing efforts;
- (4) On a continuing basis and not later than 60 days before each calendar year quarter, Franchisee shall submit to Franchisor a written quarterly marketing plan for review and approval by Franchisor; and
- (5) Franchisee hereby grants to Franchisor the right, without compensation to Franchisee, to use Franchisee's name, address, photograph, and biographical information in any publication related to the System, including in relation to the sale of other Spa Location Franchises.
9.C. REQUIRED FRANCHISOR APPROVAL OF ALL MARKETING
All marketing and promotion of the Franchised Business and all marketing media utilized by Franchisee in the marketing and/or promotion of the Franchised Business must be professional and must conform to Franchisor's standards and specifications as set forth in the Operations Manual or as otherwise directed by Franchisor in writing. Before Franchisee uses any local marketing and promotional materials and/or media not prepared by or previously approved by Franchisor in writing, Franchisee shall submit samples of such materials to Franchisor for approval, which shall be at the discretion of Franchisor, in Franchisor's Reasonable Business Judgment. Provided that Franchisee has satisfied the notification requirements set forth in this Agreement, if Franchisor does not notify Franchisee that Franchisor disapproves the materials within 30 days from the date Franchisor receives the materials, then Franchisee may commence using the materials. However, Franchisor may still disapprove such materials by notice to Franchisee, and Franchisee must then cease using such materials upon receipt of such notice. Franchisee must not use any advertising or promotional materials that Franchisor has disapproved.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the franchisor has significant control over the franchisee's marketing and advertising efforts. C3 Wellness Spa requires that all marketing and promotion of the franchised business conform to the franchisor's standards and specifications, as detailed in the Operations Manual or as otherwise directed in writing.
Before a C3 Wellness Spa franchisee uses any local marketing and promotional materials not prepared or previously approved by the franchisor, they must submit samples for approval. The franchisor has the discretion to approve or disapprove of these materials based on their reasonable business judgment. If the franchisor does not respond within 30 days of receiving the materials, the franchisee may begin using them. However, C3 Wellness Spa retains the right to disapprove the materials even after this period, and the franchisee must cease using them upon notice. Franchisees are prohibited from using any advertising or promotional materials that the franchisor has disapproved.
Furthermore, C3 Wellness Spa mandates that a franchisee's marketing efforts be directed toward and contained within their designated territory. If marketing efforts extend beyond the designated territory, the franchisor has the right to approve or disapprove of such marketing based on its distribution reach. Franchisees must also submit a written quarterly marketing plan to the franchisor for review and approval, at least 60 days before each calendar year quarter. C3 Wellness Spa also has the right to use the franchisee's name, address, photograph, and biographical information in any publication related to the system, including those related to the sale of other spa location franchises, without providing compensation to the franchisee.