What is the total estimated initial investment range for opening a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | |
|---|---|---|---|---|
| To Whom Payment is Made | ||||
| Development Area Fee (Note 1) | $40,000 – $145,000 | Lump sum | When Franchise Agreement and Multi- Unit Development Agreement are signed | |
| Estimated Initial Investment to Open One Spa Location Franchise (Note 2) | $652,928 – $856,616 | Estimated Initial Investment is based on estimate contained in Table A, above, of this Item 7, for a Franchise Agreement. See, Table A | ||
| Professional Fees (Note 12) | $26,500 – $32,000 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
|---|---|---|---|---|
| Licenses and | $1,038 – $1,453 | As arranged | As incurred | Government |
| Permits (Note 13) | ||||
| Uniforms | $5,000 – $30,000 | As arranged | As incurred | Suppliers, us or our affiliate |
| Additional Funds – | $130,399 – $189,678 | As incurred | Before opening | Employees, suppliers, |
| 3 months | landlord, utility | |||
| (Note 14) | suppliers | |||
| Total Estimate | $652,928 – $858,616 | |||
| (Note 15) |
| Type of Expenditure | Amount | When Due | To Whom Payment is Made | |
|---|---|---|---|---|
| Initial Franchise Fee | $45,000 | Lump sum | When Franchise | |
| (Note 1) | Agreement is signed | Us | ||
| Construction and Leasehold Improvements (Note 2) | $350,000 – $400,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Lease Deposits | $13,500 – $18,900 | As arranged | As incurred | Landlord |
| (Note 3) | ||||
| Furniture, Fixtures | $30,000 – $60,000 | As arranged | As incurred | Suppliers |
| and Equipment | ||||
| (Note 4) | ||||
| Initial Retail | $3,000 – $5,000 | As billed | As incurred | Suppliers |
| Inventory (Note 5) | ||||
| Initial Supply | $4,000 – $5,700 | As billed | As incurred | Suppliers |
| Inventory (Note 6) | ||||
| Signage | $10,000 – $20,000 | As arranged | As incurred | Suppliers |
| (Note 7) | ||||
| Grand Opening | $15,000 – $20,000 | As arranged | As incurred | Suppliers |
| Marketing Expenses | ||||
| (Note 8) | ||||
| Computer, Software | $16,261 – $22,766 | As arranged | As incurred | Suppliers |
| and Point of Sales | ||||
| System | ||||
| Utility Deposits | $1,056 – $1,478 | As arranged | As incurred | Suppliers |
| (Note 9) | ||||
| Insurance Deposits | $164 – $689 | As arranged | As incurred | Insurers |
| (Note 10) | ||||
| Travel for Initial | $2,010 – $5,952 | As arranged | As incurred | Airlines, ho |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the estimated initial investment to open one spa location ranges from $652,928 to $858,616. This total estimate encompasses various expenditures, such as the initial franchise fee, construction and leasehold improvements, lease deposits, furniture, fixtures and equipment, initial retail and supply inventory, signage, grand opening marketing expenses, computer and software systems, utility and insurance deposits, travel for initial training, professional fees, licenses and permits, uniforms, and additional funds for the first three months of operation. These figures are detailed in Table A of Item 7 within the FDD.
Prospective franchisees should note that the initial investment can vary significantly based on factors like the location of the spa, the cost of construction and leasehold improvements, and the extent of lease deposits required. For instance, construction and leasehold improvements are estimated to cost between $350,000 and $400,000, while lease deposits can range from $13,500 to $18,900, depending on negotiations with the landlord. Furniture, fixtures, and equipment are estimated to cost between $30,000 and $60,000. The initial franchise fee is a fixed cost of $45,000.
Additionally, C3 Wellness Spa franchisees need to consider ongoing costs such as inventory replenishment and working capital. The FDD estimates additional funds for the first three months of operation to be between $130,399 and $189,678, covering expenses like employee salaries, inventory, rent, and utilities. These estimates do not include compensation for the franchisee or owners, nor do they include interest or finance charges. It is crucial for potential franchisees to carefully review all components of the initial investment and prepare a detailed financial plan to ensure they have sufficient capital to launch and sustain their C3 Wellness Spa business.