What continuing fees are C12 Group franchisees required to pay to the franchisor?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchisee shall submit a monthly Area Chair Activity and Payment Report via the reporting system to Franchisor by the fifth (5th) business day of each month for the preceding month's activity.
Franchisee shall pay Franchisor a late fee of $100 each time this report is late.
Any unpaid Royalty Fees past-due greater than thirty (30) days will be subject to a monthly compounded interest rate of 1.5% or the maximum interest rate allowed by law.
In addition, if Franchisee requires a change to a monthly Area Chair Activity and Payment Report (not due to Franchisor's system error) after the fifth (5th) day of the following month, Franchisee must pay Franchisor a $99 fee to correct such error(s).
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.
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. 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.
Franchisee shall receive an annual allotment of $500 to purchase such C12 promotional materials from the C12 online store.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees are subject to several continuing fees. These include royalty fees, which are a percentage of monthly member billings, ranging from 12% to 30%. Additionally, franchisees must pay a new member registration fee, currently $550 for a CEO Forum member and $330 for a Key Player Forum member. There is also a monthly Support Fee of $200 per Associate Chair engaged by the franchisee, which ends once the CEO Forum run by the Associate Chair reaches ten CEO members or generates $10,000 in Gross Billings, whichever occurs first.
C12 Group franchisees also face other potential fees related to operations. A late fee of $100 is charged each time the monthly Area Chair Activity and Payment Report is submitted late. If a franchisee requires a correction to this report after the fifth day of the following month (not due to the franchisor's system error), a $99 fee is applied. Furthermore, any unpaid Royalty Fees past due for more than thirty days accrue interest at a monthly compounded rate of 1.5% or the maximum interest rate allowed by law.
Beyond these standard 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 their annual standard allotment. While franchisees receive an annual allotment of $500 to purchase C12 promotional materials from the C12 online store, exceeding this amount will result in additional costs. It is important to note that the franchisor reserves the right to modify the due dates and methods of payment for all payments due under the agreement, and training and material fees are subject to change if the price of materials increases above current costs.