From where is the balance of the cost paid for the C12 Direct Mail Campaign after the C12 Group subsidy?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
C12 will conduct on your behalf a turnkey direct mail campaign as one means to generate prospects for these initial meetings (hereinafter "C12 Direct Mail Campaign") (FA Section III).
C12 has arranged for mailing lists, a contracted mail house, marketing materials, and options for letter format and style from which you may select when you order a C12 Direct Mail Campaign in conjunction with your first Introductory Event.
C12 will subsidize and co-op a portion of your campaign's cost (i.e., currently 17.5-30% based on your prevailing monthly royalty fee as a % of billings), as further described in 14 below (FA Section III), and the balance of the cost will be paid from the Prepaid Marketing Fund that has been designated from your Initial Franchise Fee.
If you order any additional C12 Direct Mail Campaigns after your Introductory Event, C12 will continue to subsidize and co-op a portion of your campaign's cost (i.e., based on your prevailing monthly royalty fee as a % of billings), as further described in 14 below (FA Section III).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group will subsidize a portion of the C12 Direct Mail Campaign cost, with the subsidy ranging from 17.5% to 30% based on the franchisee's prevailing monthly royalty fee as a percentage of billings. The C12 Direct Mail Campaign is one way to generate prospects for initial meetings. C12 Group has arranged for mailing lists, a contracted mail house, marketing materials, and options for letter format and style from which franchisees may select.
The balance of the cost for the initial C12 Direct Mail Campaign, after the C12 Group subsidy, will be paid from the Prepaid Marketing Fund. The Prepaid Marketing Fund is designated from the franchisee's Initial Franchise Fee.
If a franchisee orders any additional C12 Direct Mail Campaigns after their Introductory Event, C12 Group will continue to subsidize a portion of the campaign's cost, based on the franchisee's prevailing monthly royalty fee as a percentage of billings. The FDD does not specify where the balance of the cost is paid from for additional C12 Direct Mail Campaigns after the Introductory Event. A prospective franchisee should ask the franchisor about this.