On what basis does a C12 Group franchisee pay Royalty Fees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will pay Franchisor Royalty Fees based on Franchisee's membership roster and billings regardless of whether Franchisee actually collects the registration and/or membership fees from its members.
8. Performance, Conduct, and Confidentiality
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the franchisee's monthly royalty fees are calculated based on the membership roster and billings. The franchise agreement states that continuing fees are a percentage of monthly member billings, ranging from 12% to 30%.
Even if a C12 Group franchisee does not collect registration or membership fees from their members, they are still obligated to pay royalty fees to C12 Group based on the membership roster and billings. This means that the franchisee's financial responsibility to C12 Group is not contingent upon their own collection success from members.
Franchisees must submit a monthly Area Chair Activity and Payment Report to C12 Group by the fifth business day of each month, detailing the previous month's activity. Late submissions incur a $100 fee. Royalty fees are due by the fifth of each month via ACH, check, or credit card (with transaction fees paid by the franchisee). Late payments are subject to a monthly compounded interest rate of 1.5%, or the maximum rate allowed by law.