What were the continuing fees for C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
counting principles generally accepted in the United States (GAAP). The financial statements were presented on a consolidated basis and all significant intercompany accounts and transactions eliminated.
Revenue Recognition: A majority of the Company's revenues are derived from franchise fees. Franchise agreements generally require the franchisee to pay 1) an initial non-refundable territory fee of $25,000 per franchise unit, 2) a prepaid marketing deposit of $10,000, 3) a training and support fee of $10,000 to $12,500, which is refundable prior to the start of training, 4) continuing fees based upon a percentage of monthly member billings ranging from 12% to 30%, and 5) a new member registration fee ranging from $300-500. Franchise agreements are renewed annually with no additional charges.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees are required to pay continuing fees. These fees are calculated as a percentage of monthly member billings, and the percentage ranges from 12% to 30%.
For a prospective C12 Group franchisee, this means that their ongoing costs will vary depending on their members' billings. Higher member billings will result in higher continuing fees paid to C12 Group. The specific percentage that a franchisee pays within the 12% to 30% range is not specified in this document.
It is important to note that C12 Group may notify franchisees of material changes to royalty fees at least twelve months before the expiration of the term or any renewal term. This provides franchisees with some advance notice of potential changes to their continuing fee obligations.
In addition to continuing fees, C12 Group franchisees also pay other fees, including an initial territory fee, a prepaid marketing deposit, a training and support fee, and new member registration fees.