From whom must the System Supplies be purchased for a C3 Wellness Spa franchise?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
onable Business Judgment, the Approved Spa Products and Services or Spa Facility and Management Services.
- (2) Franchisee's Spa Location shall exclusively offer, sell, and provide to the public only those Approved Spa Products and Services designated and authorized by Franchisor, in Franchisor's Reasonable Business Judgment, and, as may be modified by Franchisor from time to time in Franchisor's Reasonable Business Judgment.
- (3) The Franchised Business will exclusively: (a) offer and provide the Approved Spa Products and Services or, as applicable the Spa Facility and Management Services; (b) offer and provide from the Spa Location the Approved Spa Products and Services in accordance with the System's standards and specifications; (c) exclusively purchase and use System Supplies purchased from Franchisor or Franchisor's designated suppliers; (d) exclusively purchase and utilize equipment, supplies, promotional materials, point of sale systems and Business Management System(s)
designated by Franchisor and subject to Franchisor's specifications; (e) purchase interior displays, point of sale displays, uniforms, supplies, marketing materials and promotional materials including, but not limited to, System Supplies, as designated by Franchisor and only from Franchisor or Franchisor's approved supplier(s); and (f) purchase from distributors and other suppliers approved by Franchisor all other materials, goods, and supplies (including but not limited to System Supplies) used in preparing, offering, selling, promoting, and serving the Approved Spa Products and Services.
- (4) Franchisor has and will periodically approve suppliers and distributors of the equipment, materials, supplies and products including, but not limited to, System Supplies, that meet Franchisor's standards, specifications, and requirements including, without limitation, standards, specifications, and requirements relating to the equipment and supplies to be utilized by the Franchised Business.
- (5) Franchisor, in Franchisor's Reasonable Business Judgment, may, from time to time, modify the list of approved brands, suppliers and distributors of System Supplies and approved equipment, supplies and services to be utilized by the Franchised Business and Franchisee shall, after receipt in writing of such modification, not reorder any brand and/or purchase from any supplier or distributor that is no longer designated or approved by Franchisor.
- (6) Franchisor reserves the right to designate, from time to time, a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, franchisees must purchase System Supplies either from C3 Wellness Spa itself or from suppliers that C3 Wellness Spa has officially approved. C3 Wellness Spa retains the authority to modify the list of approved suppliers and can designate a single, exclusive supplier for any System Supplies, which could be C3 Wellness Spa or its affiliates.
C3 Wellness Spa periodically approves suppliers and distributors of equipment, materials, supplies, and products, including System Supplies, that meet the franchisor's standards and specifications. Franchisees are obligated to adhere to any modifications made to the list of approved brands, suppliers, and distributors, and they must cease reordering from any supplier that is no longer approved after receiving written notice of such changes.
C3 Wellness Spa and its affiliates may receive payments from suppliers or distributors based on their dealings with franchisees. These payments can be used without restriction and for any purpose C3 Wellness Spa deems appropriate. This arrangement is common in franchising, where franchisors often negotiate volume discounts or rebates with suppliers, but it's important for franchisees to be aware of these financial relationships.