On what basis has C12 Group estimated the fees in the initial investment table?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise noted, all fees are imposed by us, are payable to us, are non-refundable and subject to change. C12 does not provide any financing for any of the fees referenced in the immediately preceding table. In addition to the assumptions and descriptions contained in the footnotes to the immediately preceding table, C12 has estimated the fees in the table on the basis of its prior operation, since 1992, of businesses the same as or substantially similar to the business to be operated by the franchisee along with experience of actual franchisees.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–18)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the fees in the initial investment table are estimated based on C12 Group's prior operational history since 1992. This includes the operation of businesses that are either the same as or substantially similar to the business that the franchisee will operate. The estimation also considers the experiences of existing C12 Group franchisees.
This means that C12 Group has used its own long-term experience and the real-world experiences of its franchisees to determine the estimated initial investment costs. This approach is fairly common in franchising, as franchisors often rely on historical data to provide potential franchisees with realistic investment ranges. The initial investment table provides prospective franchisees with an idea of the costs they may incur when starting the C12 Group franchise.
It is important for potential franchisees to understand that these are estimates and actual costs may vary. Factors such as the franchisee's management skills, local economic conditions, and the ability to control costs can impact the total investment. While C12 Group's experience provides a solid foundation for these estimates, franchisees should conduct their own due diligence and consult with financial advisors to determine their specific financial needs.