What was the amount of training fees collected by C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
s 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 $300-500. 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 assistance with local C12 events. Initial territory fees are recognized as revenue when substantially all initial services under the franchise agreement are completed. Continuing fees are recognized as earned.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the company's franchise agreements stipulate that franchisees must pay a training and support fee. This fee ranges from $10,000 to $12,500 and is refundable if the franchisee cancels before training begins. Additionally, franchisees are required to pay a monthly fee of $110 to cover the costs associated with attending the Semi-Annual Chair Training. Franchisees must also pay $110 per month for each Associate Chair they engage to cover the registration fees for these training events.
The FDD also states that the company is carrying a note receivable for the remaining amount to be collected from the sale of the C12 Atlanta entity to a franchisee in January 2023. The note is due to be collected through monthly principal payments of $9,640 through January 2025. The note had a balance of $133,107 at December 31, 2023.
However, the 2025 FDD does not explicitly state the total amount of training fees collected by C12 Group during 2023. A prospective franchisee should consider asking the franchisor for this specific financial data to better understand the revenue streams and financial performance of the company related to training activities.