factual

When is a C12 Group franchisee required to purchase New Member Registration Kits?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

SERVICES**

Required Purchases from C12

You are required to purchase New Member Registration Kits from us whenever you have a new member sign up with your C12 Forum. You will pay us flat fees for each CEO Member and Key Player Member, and you will charge that fee (or a greater fee) to such members. Other than New Member Registrations, you are not obligated to purchase or lease from C12 or any specified sources any equipment, services, supplies, fixtures, computer equipment and network peripherals, signs, inventory or real estate during the establishment or operation of your business.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)

What This Means (2025 FDD)

According to C12 Group's 2025 Franchise Disclosure Document, franchisees are required to purchase New Member Registration Kits whenever a new member signs up for their C12 Forum. The franchisee pays C12 Group a flat fee for each CEO Member and Key Player Member and then charges that fee, or a greater fee, to the new members.

This requirement ensures that C12 Group franchisees consistently onboard new members using the company's standardized materials and processes. By mandating the purchase of these kits, C12 Group maintains brand consistency and quality control across all franchise locations. The revenue C12 Group receives from these purchases was $458,500 during the fiscal year ending December 31, 2024, representing 5.8% of their total revenue of $7,852,914.

For a prospective franchisee, this means that a portion of their expenses will be allocated to purchasing these kits. However, the franchisee has the ability to pass this cost on to the new members, potentially even marking it up to generate additional revenue. Outside of the New Member Registrations, franchisees are not obligated to purchase or lease any equipment, services, supplies, or real estate from C12 Group.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.