What is the C12 Direct Mail Campaign designed to generate for the C12 Group franchisee?

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).

Performing marketing and promotions in your Territory by spending the Prepaid Marketing Fund on initiatives that directly promote the formation of new C12 Business Forums in your Territory.

Prepaid Marketing expenditures that qualify for payment include C12 Direct Mail

Campaigns related to C12 introductory events or meetings, procurement of qualifying lists of leads, local advertising, banners and other displays for exhibiting, event sponsorships, and emarketing. The use of the Prepaid Marketing Fund and percentage used for different approved expenditures vary for each individual practice and Chair. You are to follow the C12 Brand Standards Guide. Items which do not qualify include software related to contact or customer relationship management, regular subscriptions (e.g., Constant Contact), foodand beverage, catering, organizational membership dues, space rental for events or meetings, audio-visual equipment, and general supplies. Upon your submission of written requests with applicable documentation, C12 will reimburse you for your out-of-pocket expenditures on qualifying Prepaid Marketing Expenditures up to the limit of the balance available in the Prepaid Marketing Fund. C12 will make payments directly to vendors in the cases where C12 administers the marketing initiative on your behalf. You are not precluded from spending on non-qualifying marketing items or spending amounts greater than the $10,000 Prepaid Marketing Fund, but such costs will be borne solely by you. C12 will provide you with a periodic Prepaid Marketing Fund financial statement upon your request. C12 audits the Prepaid Marketing Fund account monthly. C12 uses the Prepaid Marketing Fund to solicit for new franchisees. For the purpose of promoting the formation of new C12 forums, C12 requires you spend the full prepaid marketing fund within 18 months of the execution of this agreement, and any unspent amounts will be forfeited as of that date.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)