Under what conditions might C3 Wellness Spa enter into a Site Selection Acknowledgment with a franchisee?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (4) If, as of the Effective Date or other appropriate periods after the Effective Date, Franchisee has not selected a proposed Spa Location that is approved by Franchisor but, Franchisee has identified an area in which Franchisee may look to secure a site for the Franchised Business, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, may enter into the Site Selection Acknowledgment attached to this Agreement as Exhibit 3.
If executed by Franchisor, within the Exhibit 3 Site Selection Acknowledgment, Franchisor shall designate a geographic area (the "Site Selection Area") within which Franchisor, during the Site Selection Period, shall not, on behalf of any third party, approve any new Spa Location.
Franchisee agrees that the Site Selection Acknowledgment does not, in any way, constitute the approval of Franchisor as to any proposed Spa Location, does not constitute or determine Franchisee's final approved Spa Location, does not constitute Franchisor's designation of Franchisee's Designated Territory, does not afford Franchisee any territorial rights in or to the Site Selection Area, and does not extend and/or modify any obligation on the part of Franchisee to timely secure an approved Spa Location in accordance with the terms of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, a Site Selection Acknowledgment may be entered into under specific conditions. If a franchisee has identified an area to secure a site for their franchised business but hasn't yet selected a proposed spa location approved by C3 Wellness Spa as of the effective date or other appropriate periods after the effective date, C3 Wellness Spa may, at its discretion and reasonable business judgment, enter into a Site Selection Acknowledgment.
If C3 Wellness Spa executes the Site Selection Acknowledgment, it will designate a geographic area (the "Site Selection Area") within which C3 Wellness Spa will not approve any new spa location on behalf of any third party during the Site Selection Period. This agreement is attached as Exhibit 3 to the Franchise Agreement.
However, the document emphasizes that the Site Selection Acknowledgment does not constitute approval of any proposed spa location, determine the franchisee's final approved spa location, designate the franchisee's designated territory, afford any territorial rights in the Site Selection Area, or modify the franchisee's obligation to secure an approved spa location in a timely manner.
In practical terms, this means that while C3 Wellness Spa might offer a limited period of exclusivity in a specific area to aid in site selection, the franchisee bears the ultimate responsibility for finding and securing an approved location that meets C3 Wellness Spa's standards and adheres to the franchise agreement's timelines.