What is the Franchise Fee per 1.0 Franchise Unit for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
counting principles generally accepted in the United States (GAAP). The financial statements were presented on a consolidated basis and all significant intercompany accounts and transactions eliminated.
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. Franchise agreements are renewed annually with no additional charges.
When a franchise is sold, the Company agrees to provide certain services to the franchisee, including assisting with site selection, training, reference and promotional materials and assistance with local C12 events. Initial territory fees are recognized as revenue when substantially all initial services under the franchise agreement are completed. Continuing fees are recognized as earned.
The Company also has license agreements in certain international markets.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the initial non-refundable territory fee is $25,000 per franchise unit. This fee grants the franchisee the right to operate within a defined territory. The size and potential of the territory are measured in "Franchise Units," which determine the applicable franchise fee.
For instance, a metropolitan market with 1.3 Franchise Units would have a $32,500 franchise fee. A rural market with 0.65 franchise units would have a $16,250 franchise fee. A territory of 0.92 units would still consist of a $25,000 Franchise Fee whereas a market with 0.47 units would consist of a $12,500 Franchise Fee ($12,500 being the minimum).
Territory expansion requires a payment for each additional unit of market potential. The prevailing discounted franchise fee for expansions is currently $20,000 per unit, with a minimum payment of $2,500 to C12 Group. These fees are generally non-refundable, so prospective franchisees should carefully evaluate the market potential before committing to a specific territory size or expansion.