Must a C12 Group franchisee adhere to the Franchisor's basic business model?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
opportunity to participate in any global C12 web functionality (e.g., search for other members, benchmarking, bulletin board/blog functions, etc.).
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- Specific Operational Obligations. Franchisee shall adhere to and comply with Franchisor's basic business model and its various standard processes, due dates, and payments, as they may be revised from time to time in Franchisor's sole discretion. Currently, these obligations of Franchisee include the
following:
- a. Franchisee shall submit a monthly Area Chair Activity and Payment Report via the reporting system to Franchisor by the fifth (5th) business day of each month for the preceding month's activity. Franchisee shall pay Franchisor a late fee of $100 each time this report is late. Any unpaid Royalty Fees past-due greater than thirty (30) days will be subject to a monthly compounded interest rate of 1.5% or the maximum interest rate allowed by law. Late fees and interest shall be paid in conjunction with Franchisee's payment of Royalty Fees. In addition, if Franchisee requires a change to a monthly Area Chair Activity and Payment Report (not due to Franchisor's system error) after the fifth (5th) day of the following month, Franchisee must pay Franchisor a $99 fee to correct such error(s).
- b. Franchisee shall pay Franchisor all fees due under this Agreement via ACH or check (or credit card with Franchisee paying the applicable transaction and processing fees), which must be received by Franchisor by the fifth (5th) day of the month.
- c. Franchisor reserves the right to modify the due dates and methods of payment for all payments due under this Agreement. Franchisor also reserves the right to have any of its staff, officers or Board Directors visit Franchisee's scheduled C12 meetings, given advanced notice, to support Franchisee in Franchisee's effortsto develop strong C12 forums, effectively apply C12 methods and processes, and to encourage Franchisee and Franchisee's members.
- d. Franchisee shall conduct member registration for CEO members and Key Players members by using standard C12 forms and registration payment remittance amounts and methods set forth herein (see fee schedule
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees must adhere to and comply with the franchisor's basic business model. This includes various standard processes, due dates, and payments, which C12 Group may revise from time to time at its sole discretion. This requirement ensures consistency and quality across all C12 Group franchises.
Specifically, franchisees must submit a monthly Area Chair Activity and Payment Report via the reporting system to C12 Group by the fifth business day of each month for the preceding month's activity. Failure to submit the report on time results in a late fee of $100. Franchisees must also pay all fees due under the agreement via ACH or check (or credit card with the franchisee paying the applicable transaction and processing fees), which must be received by C12 Group by the fifth day of the month. C12 Group retains the right to modify the due dates and methods of payment for all payments due under the agreement.
C12 Group also reserves the right to have its staff, officers, or Board Directors visit a franchisee's scheduled C12 meetings, given advanced notice, to support the franchisee in their efforts to develop strong C12 forums, effectively apply C12 methods and processes, and to encourage the franchisee and the franchisee's members. Furthermore, franchisees must conduct member registration for CEO members and Key Players members by using standard C12 forms and registration payment remittance amounts and methods set forth in the FDD, which are maintained on the C12 App or via another platform determined by C12 Group for the franchisee's use. These obligations ensure that franchisees operate within the established framework and maintain the standards set by C12 Group.