Under what circumstances can a term of the C3 Wellness Spa agreement be waived?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| Development Spa Initial Franchise Fee for Other Development Spas | |
|---|---|
| OTHER AUTHORIZED DEVELOPMENT SPAS: Provided that Franchisee is not in default of the terms of | |
| this C3 Wellness Multi-Unit Development Agreement (including but not limited to the Development Schedule set | |
| forth below) and that neither Franchisee nor Franchisee’s affiliates are in default of any Franchise Agreement or | |
| other agreement with Franchisor, the Development Spa Initial Franchise Fee for each additional Development | |
| Spa (over and above the First Development Spa), is: $0 (Waived), payable at the time of signing the Franchise | |
| Agreement for each Development Spa. |
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the development spa initial franchise fee can be waived under specific conditions for franchisees entering into a Multi-Unit Development Agreement.
Specifically, if a franchisee is not in default of the C3 Wellness Multi-Unit Development Agreement, including adherence to the Development Schedule, and neither the franchisee nor their affiliates are in default of any other agreement with the franchisor, the initial franchise fee for each additional development spa beyond the first is waived. This fee is listed as $0 and is payable at the time of signing the Franchise Agreement for each subsequent development spa.
This waiver of the initial franchise fee can significantly reduce the financial burden for franchisees looking to expand rapidly through multiple locations. However, it's crucial for franchisees to remain in full compliance with all agreements to maintain eligibility for this waiver, as any default could result in the fee being reinstated for additional locations.