What was the amount of continuing fees collected by C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ith accounting principles generally accepted in the United States (GAAP). The financial statements were presented on a consolidated basis and all significant intercompany accounts and transactions eliminated.
Revenue Recognition: A majority of the Company's revenues are derived from franchise fees. Franchise agreements generally require the franchisee to pay 1) an initial non-refundable territory fee of $25,000 per franchise unit, 2) a prepaid marketing deposit of $10,000, 3) a training and support fee of $10,000 to $12,500, which is refundable prior to the start of training, 4) continuing fees based upon a percentage of monthly member billings ranging from 12% to 30%, and 5) a new member registration fee ranging from $250 to $425, which increased to $300 to $500 in July 2023. Franchise agreements are renewed annually with no additional charges.
When a franchise is sold, the Company agrees to provide certain services to the franchisee, including assisting with site selection, training, reference and promotional materials and
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
I am unable to provide the exact amount of continuing fees collected by C12 Group in 2023, according to the 2025 Franchise Disclosure Document. While the document discusses how C12 Group recognizes continuing fees as earned, it does not specify the total amount of continuing fees the company collected during that year. The FDD does state that franchise agreements require franchisees to pay continuing fees based on a percentage of monthly member billings, ranging from 12% to 30%.
Without this specific figure, prospective franchisees cannot fully assess C12 Group's revenue streams and financial performance. Understanding the magnitude of continuing fees is crucial for evaluating the overall health and stability of the franchise system.
To gain a clearer understanding, a prospective franchisee should ask C12 Group for detailed financial statements that break down the company's revenue sources, including the total continuing fees collected in 2023. This information will help them make a more informed decision about investing in a C12 Group franchise.