What were the continuing franchise fees for The C12 Group, LLC in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ith accounting 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 bill
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group 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%.
In addition to the percentage of monthly member billings, C12 Group franchisees must also pay a new member registration fee. This fee ranged from $250 to $425 but increased to a range of $300 to $500 in July 2023. The amount of the fee depends on the membership type.
Prospective franchisees should note that these continuing fees are essential for the ongoing operation of a C12 Group franchise. The fees contribute to the franchisor's revenue and support the services provided to franchisees. Understanding the structure and amounts of these fees is crucial for assessing the financial viability of the franchise.