Have the financial figures reported by C12 Group franchisees been audited or independently verified?

According to C12 Group's 2025 Franchise Disclosure Document, the financial figures reported by franchisees have not been audited or independently verified. Specifically, the FDD states that the total revenue figures reported by 65 franchisees, amounting to $44,250,036 for the period between January 1, 2024, and December 31, 2024, were reported to C12 Group by their franchisees.

This lack of independent verification means that prospective franchisees should exercise caution when considering these figures. While the FDD is legally required to provide a reasonable basis for any financial performance representations, the absence of an audit places a greater burden on the potential franchisee to conduct their own due diligence. This may involve speaking with existing franchisees, reviewing their financial records (if available), and consulting with a financial advisor.

It is standard practice in the franchise industry for franchisors to present financial performance representations in Item 19 of the FDD. However, the level of assurance associated with these figures can vary. Some franchisors may choose to have their franchisees' financial data audited or reviewed by an independent accounting firm, which would provide a higher level of confidence in the accuracy of the reported results. The fact that C12 Group does not audit or independently verify these numbers is not necessarily a red flag, but it does highlight the importance of conducting thorough due diligence.

Prospective franchisees should also note that C12 Group only makes financial performance representations in Item 19 and does not authorize employees or representatives to make any other representations, either orally or in writing. If a potential franchisee receives any other financial performance information or projections, they are advised to report it to C12 Group management, the Federal Trade Commission, and the appropriate state regulatory agencies.