Where is the disclosure regarding 'grandfathered in' C12 Group franchisees located?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no material financial or operational differences between these franchisees and the franchise offered under this disclosure document except that, as disclosed in Item 6, some early franchisees are "grandfathered in" at lower Royalty Fee percentages, but the different Royalty Fee percentages do not affect the Total Revenue earned by those franchisees.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the information regarding franchisees who are 'grandfathered in' at lower Royalty Fee percentages is disclosed in Item 6. Item 19 references this disclosure in Item 6, noting that while some early franchisees benefit from these lower royalty fees, it does not affect the total revenue earned by all franchisees.
This is relevant to prospective franchisees as it indicates that royalty fee structures may vary among franchisees, particularly those who joined the C12 Group system earlier. While the financial performance data presented in Item 19 reflects the total revenue earned by franchisees, it's important to understand that individual profitability could be influenced by the specific royalty fee agreement in place.
Therefore, when considering a C12 Group franchise, prospective franchisees should carefully review Item 6 of the FDD to understand the details of the 'grandfathered' royalty fee arrangements and how they might differ from the standard royalty fees applicable to new franchisees. Understanding these differences can help in accurately assessing the potential financial performance and profitability of a C12 Group franchise.