What constitutes the sole consideration for the payment of the Initial Franchise Fees for a C12 Group franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
pliance with the C12 System Standards as set forth in the Franchise Agreement and the Operations Manual and
Playbooks.
V. Initial Franchise Fees
Franchisee acknowledges that the granting of this Agreement constitutes the sole consideration for the payment of the Initial Franchise Fees, which depend on the number of Territory Units granted to Franchisee. Franchisee's Initial Franchise Fees are comprised of the components below:
- Franchise Fee. Upon the execution of this Agreement, Franchisee must pay Franchisor a Franchise Fee as set forth below. The Franchise Fee varies based on the target market potential of the designated Territory for the Franchised Business. Franchise Units are $25,000 (with Franchise Unit otherwise already defined from a calculation basis) per 1.0 unit (Territories comprising between 0.9 and 1.1 units count as one (1) unit). Franchisor will determine the number of units that Franchisee's Territory constitutes. If a defined territory for purchase is less than or more than one (1) unit, the Franchise Fee shall be the number of units multiplied by $25,000 but no less than $12,500. For example, a metropolitan market with a defined territory containing an estimated 1.3 units worth of eligible members would result in a $32,500 Franchise Fee. On the other hand, a rural or less densely populated market representing 0.65 units would result in a $16,250 Franchise Fee. A Territory of 0.92 units would still consist of a $25,000 Franchise Fee whereas a market with 0.47 units would consist of a $12,500 Franchise Fee ($12,500 being the minimum). Other than as specifically provided for under this Agreement, the Franchise Fee is nonrefundable.
Franchisee's Franchise Fee is stated on the Summary Page of this Agreement.
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- Prepaid Marketing Fund. Upon the execution of this Agreement, Franchisee shall pay Franchisor a $10,000 Prepaid Marketing Fund fee that may be used for marketing expenses deemed necessary by Franchisor according to the provisions set forth above in Section III. Other than as reimbursement may be provided for under this Agreement, the Prepaid Marketing Fund is non-refundable.
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- Training/Technology Fee. Prior to attending New Chair Training, Franchisee shall pay Franchisor a Training and Te
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the granting of the franchise agreement is the sole consideration for the payment of the initial franchise fees. The initial franchise fees depend on the number of territory units granted to the franchisee. These fees are comprised of several components, including a franchise fee, a prepaid marketing fund, and a training/technology fee.
The franchise fee itself varies based on the target market potential of the designated territory. Franchise units are valued at $25,000 per 1.0 unit, with territories comprising between 0.9 and 1.1 units counting as one unit. C12 Group determines the number of units that a franchisee's territory constitutes. If a defined territory for purchase is less than or more than one unit, the franchise fee is the number of units multiplied by $25,000, but no less than $12,500.
In addition to the franchise fee, a new C12 Group franchisee must pay a $10,000 prepaid marketing fund fee, which may be used for marketing expenses deemed necessary by C12 Group. There is also a Training and Technology Fee of $12,000 for the franchisee and $10,000 for any additional Associate Chairs sent to New Chair Training. The franchise fee and prepaid marketing fund are generally nonrefundable, except as specifically provided for in the agreement.