What is the C12 Group franchisee required to certify regarding a 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 C12 Group's 2025 Franchise Disclosure Document, 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.
This certification is crucial because it determines whether the franchisee and C12 Group will share the cost of reimbursing the member's monthly fees if the member concludes they did not receive value exceeding their fees. The franchisee's records and certification are the basis for determining the member's eligibility for the guarantee.
This money-back guarantee, while optional, could be a valuable tool for C12 Group franchisees to attract new members. However, it also places the responsibility on the franchisee to maintain accurate records and diligently assess each member's compliance with the specified criteria to ensure fair and accurate implementation of the guarantee.