What would be the Franchise Fee for a territory of 0.92 units for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
For example, a metropolitan market with a defined territory possessing 1.3 Franchise Units worth of eligible customers would consist of a $32,500 Franchise Fee. On the other hand, a rural or less densely populated market representing 0.65 franchise units would consist of 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).
Franchisee acknowledges that the granting of this Agreement constitutes the sole consideration for the payment of the Initial Franchise Fees, which depend on the number of Territory Units granted to Franchisee. Franchisee's Initial Franchise Fees are comprised of the components below:
- Franchise Fee. Upon the execution of this Agreement, Franchisee must pay Franchisor a Franchise Fee as set forth below. The Franchise Fee varies based on the target market potential of the designated Territory for the Franchised Business. Franchise Units are $25,000 (with Franchise Unit otherwise already defined from a calculation basis) per 1.0 unit (Territories comprising between 0.9 and 1.1 units count as one (1) unit). Franchisor will determine the number of units that Franchisee's Territory constitutes. If a defined territory for purchase is less than or more than one (1) unit, the Franchise Fee shall be the number of units multiplied by $25,000 but no less than $12,500. For example, a metropolitan market with a defined territory containing an estimated 1.3 units worth of eligible members would result in a $32,500 Franchise Fee. On the other hand, a rural or less densely populated market representing 0.65 units would result in 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). Other than as specifically provided for under this Agreement, the Franchise Fee is nonrefundable.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a territory consisting of 0.92 units would have a franchise fee of $25,000. The franchise fee is determined by the target market potential of the designated territory. Territories comprising between 0.9 and 1.1 units count as one unit. The franchise fee is $25,000 per 1.0 unit. However, the minimum franchise fee is $12,500.
For a prospective C12 Group franchisee, this means that even if the territory doesn't reach a full unit, the franchise fee could still be $25,000 if it falls within the 0.9 to 1.1 unit range. This is an important consideration when evaluating the potential market and associated costs. The franchise agreement states that the franchisor will determine the number of units that a franchisee's territory constitutes.
It is important to note that the franchise fee is generally non-refundable, so careful consideration should be given before entering into an agreement. The FDD also mentions examples of franchise fees for different unit sizes, such as $32,500 for 1.3 units and $16,250 for 0.65 units, providing a clearer picture of how the fee structure works based on market potential.