What is the C12 Group franchisee required to certify regarding the applicable member's status for the money-back guarantee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may, but is not required to, offer a 'money-back guarantee' to new members which offers the following: if they, as a member in good standing (i.e., met C12's attendance, participation, and on-time payment criteria over twelve (12) months, as certified by Franchisee) conclude after a full year as a C12 member that they did not receive value (both temporal and eternal) in excess of their accumulated fees over that same period, then Franchisee will provide them with a full refund of the monthly dues they have paid as they terminate Business Forum membership.
If Franchisee offers such a guarantee and keeps necessary records and certifies the applicable member's 'member in good standing' status over the twelve (12) month period, Franchisor will evenly share the cost of reimbursing the member's monthly fees with Franchisee.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group FDD, if a franchisee chooses to offer a money-back guarantee to new members, the franchisee must certify that the member was in good standing for twelve months. To be considered in good standing, the member must have met C12 Group's criteria for attendance, participation, and on-time payments during that 12-month period.
If the C12 Group franchisee offers the money-back guarantee, maintains the necessary records, and certifies the member's good standing, C12 Group will share the cost of reimbursing the member's monthly fees. This means the franchisee and franchisor will evenly split the refund amount.
This money-back guarantee can serve as a strong incentive for prospective members to join C12 Group, as it reduces their risk. However, it also places a responsibility on the franchisee to accurately track member attendance, participation, and payment history to ensure fair application of the guarantee and proper cost-sharing with C12 Group.