Under what conditions can the C3 Wellness Spa franchise agreement be modified?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. | Non-competition covenants during the term of the franchise | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Spa Location Franchise developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Spa Location Franchise developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
| s. | Modification of the agreement | 5.4, 7.11 | Only by written agreement between you and us or if |
| governing law requires a modification. We can change | |||
| the form of the Franchise Agreement for future Spa | |||
| Location Franchises which will not alter your | |||
| obligations under the Multi-Unit Development | |||
| Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the franchise agreement can only be modified under specific conditions. The agreement can be modified if there is a written agreement between the franchisee and C3 Wellness Spa. Additionally, modifications may be required if governing law mandates a change.
C3 Wellness Spa retains the right to change the form of the Franchise Agreement for future Spa Location Franchises. However, these changes will not alter the franchisee's obligations under the Multi-Unit Development Agreement. This ensures that while the franchisor can update the standard agreement for new franchisees, existing franchisees' core obligations remain consistent.
This clause protects both C3 Wellness Spa and its franchisees by ensuring that modifications are made transparently and with mutual consent, or when legally necessary. Franchisees should stay informed about any changes to governing laws that may affect their franchise agreement and seek legal counsel if needed.