How does C12 Group define 'Gross Billings' for royalty fee calculation?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
lied by twelve (12) ("Exit Fee"). | Note 1. Certain franchisees are "grandfathered in" at lower Royalty Fee rates. Otherwise, the Royalty Fee is uniformly imposed. You will pay us a monthly Royalty Fee equal to a percentage of your monthly Gross Billings (including CEO Forums and Key Players Forums) from the prior month based on a sliding scale as defined below, with payment to be received by us no later than the fifth (5th) day of each month,
even if some billings are not actually collected. "Gross Billings" means the actual total amount that you charge on a monthly basis for your collective CEO Members' and Key Player Members' membership fees subject to the minimum individual membership fees of $1,000 for CEO Members and $475 for Key Player Members. If you charge your members less than these minimum membership fees, then your Gross Billings shall be calculated based on these minimum membership fees multiplied by the respective number of CEO Members and Key Players Members on your roster each month. If you charge more than these minimum membership fees, then Gross Billings shall be based on the higher fees that you actually charge for your memberships multiplied by the respective number of CEO Members and Key Players Members on your roster.
We may increase the minimum individual membership fees over time. The minimum membership fees for 2025 are $1,100 per CEO and $500 per Key Player. In 2026, these fees will increase to $1,150 per CEO and $550 per Key Player.
The monthly Gross Billings thresholds and applica
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the royalty fee is a percentage of monthly Gross Billings, which includes revenue from CEO Forums and Key Players Forums. The franchisee must pay this royalty fee by the fifth day of each month, even if some billings have not been collected.
Gross Billings are defined as the total amount charged monthly for CEO and Key Player memberships, subject to minimum individual membership fees. For 2025, these minimums are $1,100 for CEO Members and $500 for Key Player Members. In 2026, the minimums will increase to $1,150 per CEO and $550 per Key Player. If a franchisee charges less than these minimums, Gross Billings are calculated using the minimum fees multiplied by the number of members. If the franchisee charges more, Gross Billings are based on the higher fees actually charged.
The royalty fee percentage is determined by a sliding scale based on Gross Billings. The FDD outlines the thresholds for these percentages. For example, Gross Billings between $0 and $13,000 incur a 30% royalty fee, while billings between $13,001 and $26,000 incur a 27.5% royalty fee. The percentage continues to decrease as Gross Billings increase, down to 17.5% for billings exceeding $80,001. Franchisees should note that C12 Group may increase the minimum individual membership fees over time, which would directly impact the Gross Billings calculation.