Where is the C12 Group Franchise Fee amount specified in the agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
inancial impact cannot be reasonably estimated at this time.
5. Reclassification
Certain amounts in the 2021 consolidated financial statements have been reclassified to conform to the 2022 presentation.
6. Franchise Fees
The Company executes franchise agreements that set the terms of its arrangement with each franchisee, or Area Chair. The franchise agreements require the franchisee to pay (1) an initial, non-refundable territory fee of $20,000 per franchise unit; (2) a prepaid marketing deposit of $10,000; (3) a training and support fee of $10,000 ($7,500 for Associate Chairs), which is refundable prior to the start of training; (4) continuing fees based upon a percentage of monthly member billings ranging from 17.5% to 30%; and (5) a new member registration fee ranging from $250 to $425 depending on membership type. Franchise agreements are renewed annually if both the Company and franchisee agree and the franchisee is in good st
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreement outlines the fees required from franchisees, referred to as Area Chairs. Specifically, franchisees must pay several fees. These include an initial, non-refundable territory fee of $20,000 for each franchise unit.
In addition to the initial territory fee, franchisees are also required to pay a prepaid marketing deposit of $10,000. Furthermore, there is a training and support fee of $10,000, though Associate Chairs pay a reduced fee of $7,500. This training and support fee is refundable if the franchisee cancels before training begins.
Beyond these initial fees, C12 Group franchisees also pay ongoing fees. These continuing fees are calculated as a percentage of monthly member billings, ranging from 17.5% to 30%. Finally, franchisees collect a new member registration fee ranging from $250 to $425, depending on the type of membership. The franchise agreements are renewed annually without additional fees, provided both C12 Group and the franchisee agree and the franchisee remains in good standing.