To whom are utility deposit payments made for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
MENT**
A. Franchise Agreement
| Type of Expenditure | Amount | When Due | To Whom Payment is Made | |
|---|---|---|---|---|
| Initial Franchise Fee | $45,000 | Lump sum | When Franchise | Us |
| (Note 1) | Agreement is signed | |||
| Construction and Leasehold Improvements (Note 2) | $350,000 – $400,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Lease Deposits | $13, |
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, utility deposit payments are made to suppliers. These deposits, estimated to range from $1,056 to $1,478, are required to secure utilities such as gas, electric, water, sewer, and internet access necessary for operating the C3 Wellness Spa franchise. These payments are typically arranged and incurred as needed.
Utility deposits are a standard part of the initial investment for most franchises, as franchisees need to ensure essential services are in place before opening. The amount can vary based on the location and the utility company's policies. Franchisees should budget accordingly and confirm the exact deposit amounts with local utility providers during their pre-opening phase.
It is important to note that these deposits are separate from the ongoing monthly utility expenses, which are covered under "Additional Funds" in the FDD. The "Additional Funds" are an estimated range of $130,399 to $189,678 to cover operating expenses for the first three months, including utilities, employee salaries, inventory, and rent.