Are the fees imposed by and payable to C12 Group refundable?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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 billings ranging from 12% to 30%, and 5) a new member registration fee ranging from $300-500.
Franchisee may, but is not required to, offer a 'money-back guarantee' to new members which offers the following: if they, as a member in good standing (i.e., met C12's attendance, participation, and on-time payment criteria over twelve (12) months, as certified by Franchisee) conclude after a full year as a C12 member that they did not receive value (both temporal and eternal) in excess of their accumulated fees over that same period, then Franchisee will provide them with a full refund of the monthly dues they have paid as they terminate Business Forum membership.
If Franchisee offers such a guarantee and keeps necessary records and certifies the applicable member's 'member in good standing' status over the twelve (12) month period, Franchisor will evenly share the cost of reimbursing the member's monthly fees with Franchisee.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, most fees are non-refundable. Specifically, the initial territory fee of $25,000 is non-refundable. However, the training and support fee, which ranges from $10,000 to $12,500, is refundable if the franchisee cancels prior to the start of training.
This means a prospective C12 Group franchisee should be certain before paying the initial territory fee, as it is not recoverable. However, there is some flexibility with the training and support fee, offering a window to reconsider the franchise purchase before training commences. This is a fairly standard practice in franchising, where initial franchise fees are typically non-refundable to compensate the franchisor for initial expenses and lost opportunity.
It is important to note that this document also describes a 'money-back guarantee' that a C12 Group franchisee may offer to their new members. If the franchisee offers this guarantee, and the new member meets certain criteria over their first twelve months, C12 Group will share the cost of reimbursing the member's monthly fees with the franchisee. This is separate from the fees paid by the franchisee to C12 Group.