What continuing fees are C12 Group franchisees required to pay?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
that Franchisee makes regular price adjustments to remain competitive within the industry and to keep pace with Franchisor's recommended dues schedule.
b. Member Registration Fees. Franchisee shall pay Franchisor its then-current Member Registration Fee for each new member registered with Franchisee's Franchised Business to cover certain start-up costs and materials. These fees are due with the submission of new member registrations to Franchisor and must be received before a personalized New Member Kit will be sent to Franchisee for such member(s). Franchisee may charge members more than the Member Registration Fee Franchisee pays to Franchisor. The Member Registration Fees Franchisee will pay to Franchisor, regardless of what Franchisee actually charges members, are currently $550 for a CEO Forum member and $330 for a Key Player Forum member. The recommended 2024 pricing for CEO Peer Advisory Group membership dues is $1,400 and for Key Players Group membership dues is $700 (excludes one-on-one sessions). A discount may be offered for members whose annual revenue is below $10 million. Franchisor recommends establishing pricing within a 10-25% variance of these recommendations, depending on Franchisee's local market conditions.
c. Optional Materials. Franchisee shall pay Franchisor its then-current price for optional supplies, merchandise, and C12 marketing materials beyond Franchisee's annual standard allotment as such items are ordered and (quantities and pricing are maintained on the online store). Franchisee shall receive an annual allotment of $500 to purchase such C12 promotional materials from the C12 online store.
d. Associate Chair Support Fee. Franchisee must pay Franchisor a monthly Support Fee of $200 per Associate Chair engaged by Franchisee. This monthly Support Fee will terminate either once the CEO Forum run by any particular Associate Chair has reached ten (10) CEO members or is responsible for $10,000 in Gross Billings, whichever comes first.
e. Fees Subject to Change. Franchisor's Training and Materials fees are subject to change in the event that the price of materials increases above current costs. In the event that Training and Material fees increase, Franchisee must pay Franchisor the then-current fees.
f. Optional Activities. Franchisee may choose to engage in several other optional activities and services for which Franchisee may incur costs (and also generate revenue). These might include Introductory Events and Annual Member of the Year Banquets, Local C12 Marketing, and Local C12 Seminars.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees must pay several continuing fees. These include fees based on a percentage of monthly member billings, which range from 12% to 30%. Additionally, franchisees must pay a member registration fee, which is currently $550 for each new CEO Forum member and $330 for each Key Player Forum member. Franchisees are also obligated to pay a monthly support fee of $200 per Associate Chair they engage.
C12 Group franchisees are also responsible for other potential fees. If a franchisee submits a monthly Area Chair Activity and Payment Report late, they will incur a $100 late fee. Furthermore, any unpaid royalty fees that are past due for more than 30 days are subject to a monthly compounded interest rate of 1.5%, or the maximum interest rate allowed by law. If a franchisee needs to correct an error on a monthly Area Chair Activity and Payment Report after the fifth day of the following month (and the error is not due to C12 Group's system), they must pay a $99 fee to correct the error.
In addition to the standard continuing fees, C12 Group franchisees may incur costs for optional materials. Franchisees pay the then-current price for optional supplies, merchandise, and C12 marketing materials beyond the annual standard allotment. Franchisees receive an annual allotment of $500 to purchase C12 promotional materials from the C12 online store. It is important to note that C12 Group retains the right to modify the due dates and methods of payment for all fees under the agreement, and training and material fees are subject to change if the price of materials increases above current costs.