When is the transfer fee payable to C3 Wellness Spa for a franchise transfer?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Supplier Review | Varies | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
|---|---|---|---|
| Costs, expenses, and legal fees | Costs incurred by us | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the Franchise Agreement or a termination of the Franchise Agreement. |
| Management Service | 20% of Gross Sales (plus our actual costs and expenses) | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager or other reason. |
| Transfer | Greater of 50% of the then current franchise fee payable by a franchisee who is new to the system or $22,500 | On demand | After our approval, but prior to execution of final transfer agreements and authorization. |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the transfer fee is payable 'on demand' after C3 Wellness Spa approves the transfer, but it must be paid prior to the execution of final transfer agreements and authorization.
The transfer fee is the greater of 50% of the then-current franchise fee payable by a new franchisee or $22,500. This fee covers C3 Wellness Spa's administrative costs and efforts in reviewing and approving the transfer of ownership.
This means that if a franchisee decides to sell their C3 Wellness Spa franchise, they must first obtain approval from C3 Wellness Spa. Once approved, the franchisee will need to pay the transfer fee before the transfer can be finalized. This fee is non-refundable, regardless of whether the transfer is ultimately completed. Prospective franchisees should factor this cost into their financial planning when considering a franchise purchase or sale.