What does 'Visit' mean in the context of a guest's interaction with a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (t) Visit means each instance where a guest visits the Outlet and purchases or receives Approved Spa Products and Services.
BASES AND ASSUMPTIONS
The financial information was not prepared on a basis consistent with generally accepted accounting principles. Data for our Company Owned Outlets is based on information reported to us by our affiliate. During the 2023 Calendar Year we did not have any New Franchise Outlets or Operational Franchise Outlets. The information in this analysis has not been audited, is based on historical financial data and is not a forecast or projection of future financial performance.
ANALYSIS OF RESULTS OF COMPANY-OWNED OUTLETS
During the 2023 Calendar Year, we had a total of two Operational Company Owned Outlets, which are described below:
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–55)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, a 'Visit' is defined as each instance where a guest visits the C3 Wellness Spa location and purchases or receives approved spa products and services. This definition is important for franchisees as it is a key metric used in financial performance representations. The franchisor tracks the number of visits to company-owned outlets and calculates the average gross sales per visit.
For example, in 2023, the Solivita, Florida location had 22,561 visits with an average gross sale of $100.74 per visit, while the Kissimmee, Florida location had 26,298 visits with an average gross sale of $76.76 per visit. The total gross sales for both locations was $4,291,369 with 40,859 visits and an average gross sale of $87.83.
Understanding the average gross sales per visit can help a prospective C3 Wellness Spa franchisee estimate potential revenue based on the anticipated number of customer visits to their location. This metric can be influenced by factors such as location, marketing efforts, and the range of services offered. It is important to note that the financial performance of company-owned outlets may differ from that of franchise outlets due to factors such as managerial skill, brand recognition, and the obligation to pay ongoing monthly fees.
Prospective franchisees should carefully consider the average gross sales per visit data in conjunction with other financial performance representations and conduct their own due diligence to determine the potential financial performance of a C3 Wellness Spa franchise. They should also inquire about the strategies used by successful locations to drive customer visits and increase average transaction values.