Is a C12 Group franchisee responsible for invoicing and collecting registration fees and membership fees from its members?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
While Franchisee's monthly Royalty Fee is established solely based on each month's membership roster and billings, Franchisee is solely responsible for invoicing and collecting registration fees and membership fees from Franchisee's members and setting collections policies and standards.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a C12 Group franchisee is indeed responsible for invoicing and collecting both registration fees and membership fees from their members. The franchisee also has the responsibility of setting their own collection policies and standards. This means the franchisee must manage the financial interactions with their members directly.
While the franchisee has the autonomy to set registration and monthly membership fees based on local economic conditions, these pricing changes must be reviewed in advance with C12 Group. This ensures that the franchisee's pricing strategy aligns with the overall brand and market positioning of C12 Group. Additionally, any modifications to member application or covenant forms must be approved by C12 Group to maintain consistency and value for all members.
It's important to note that the franchisee's royalty fee to C12 Group is based on the membership roster and billings each month, regardless of whether the franchisee actually collects the registration or membership fees from its members. This means the franchisee is obligated to pay royalties to C12 Group even if members are delinquent in their payments. Therefore, effective invoicing and collection policies are crucial for a C12 Group franchisee to manage their cash flow and profitability.