Is a C12 Group franchisee required to offer a money-back guarantee to new members?
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 Franchise Disclosure Document, franchisees are not required to offer a money-back guarantee to new members. However, a franchisee may choose to offer one.
If a C12 Group franchisee chooses to offer a money-back guarantee, the guarantee stipulates that if a member in good standing (meeting attendance, participation, and on-time payment criteria over 12 months, as certified by the franchisee) concludes after a full year that they did not receive value exceeding their accumulated fees, the franchisee will provide a full refund of the monthly dues paid upon termination of the Business Forum membership.
If the franchisee offers this guarantee and maintains the necessary records to certify the member's good standing over the 12-month period, C12 Group will share the cost of reimbursing the member's monthly fees evenly with the franchisee. This shared cost arrangement could incentivize franchisees to offer the guarantee, as it reduces their financial risk. However, the decision to offer the guarantee remains at the franchisee's discretion.