Is the Franchise Fee refundable for a C12 Group franchise, and if so, under what conditions?
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 ba
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the initial territory fee of $25,000 per franchise unit 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 that a prospective C12 Group franchisee who decides to terminate the agreement before commencing training can recover the training and support fee. However, the initial territory fee is not refundable, regardless of when the agreement is terminated. This is a fairly standard practice in franchising, where the initial fee compensates the franchisor for the costs associated with granting the franchise.
It is important for potential franchisees to carefully consider this policy and ensure they are fully committed to the C12 Group franchise before paying the initial territory fee. They should also confirm the exact amount of the training and support fee and the specific conditions for its refund with the franchisor before signing the franchise agreement.