What is the Franchise Fee for a C12 Group territory that is defined as 0.92 units?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the franchise fee for a territory defined as 0.92 units is $25,000. C12 Group determines the franchise fee based on the target market potential of the territory. The franchise units are valued at $25,000 per 1.0 unit. Territories that comprise between 0.9 and 1.1 units are counted as one unit.
For territories that are less than or more than one unit, the franchise fee is calculated by multiplying the number of units by $25,000, but with a minimum fee of $12,500. For example, a metropolitan market with 1.3 units would have a $32,500 franchise fee, while a rural market with 0.65 units would have a $16,250 franchise fee.
Therefore, even though the territory is less than one unit (0.92), it still counts as one full unit for the purpose of the franchise fee. This means a prospective franchisee can expect to pay the full $25,000 franchise fee for a territory of this size. The FDD also specifies that the franchise fee is generally nonrefundable, so franchisees should be aware of this before signing the agreement.