Can a C12 Group franchisee set its own registration fees and monthly member fees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
n Section VI). These standard forms and methods are maintained on the C12 App or via another platform determined by Franchisor for Franchisee's use. Franchisee may set its own registration fees and monthly member fees that Franchisee charges members based on local economics. Such pricing changes must be reviewed in advance with Franchisor, and any modifications to member application/covenant forms must be approved by Franchisor and continue to provide Franchisor with the information necessary to sustain community functionality and value for C12 members. Franchisor must receive both registration form and payment before a New Member Kit or binder will be sent to Franchisee to, in turn, provide to any new C12 member(s). 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. Franchisee will pay Franchisor Royalty Fees based on Franchisee's membership roster and billings regardless of whether Franchisee actually collects the registration and/or membership fees from its members.
8. Performance, Conduct, and Confidentiality
a. Baseline Target Performance. Franchisee shall pursue the business plan developed during Franchisee's New Chair Training and strive to achieve a ten percent (10%) market penetration of the businesses within the Territory that qualify for C12 membership (the "Baseline Target"). Franchise's Baseline Target is set forth in Section V.1. of this Agreement. Within twenty-four (24) months of opening for business, Franchisee must achieve the greater of (i) thirty-three percent (33%) of the Baseline Target or (ii) at least one (1) CEO Forum with at least ten (10) CEO Members. Franchisee must achieve fifty percent (50%) of the Baseline Target and have at least ten (10) CEO Members within three (3) years of opening for business. If Franchisee fails to achieve either of these performance levels, Franchisee shall have ninety (90) days in which to meet such levels or, if permitted by Franchisor, ninety (90) days in which to make substantial progress in good faith, as determined in Franchisor's sole discretion, toward such levels.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees have the authority to set their own registration and monthly membership fees. These fees can be adjusted based on local economic conditions. However, C12 Group requires that any pricing changes are reviewed in advance with the franchisor. Additionally, any modifications to member application or covenant forms must be approved by C12 Group to ensure they continue to provide the necessary information to maintain community functionality and value for C12 members.
While C12 Group allows franchisees to set their own fees, they also provide recommendations. For example, the recommended 2024 pricing for CEO Peer Advisory Group membership dues is $1,400, and for Key Players Group membership dues is $700 (excluding one-on-one sessions). C12 Group suggests establishing pricing within a 10-25% variance of these recommendations, depending on local market conditions. Franchisees must also pay C12 Group a Member Registration Fee for each new member, which is currently $550 for a CEO Forum member and $330 for a Key Player Forum member, regardless of what the franchisee charges the members.
This flexibility allows C12 Group franchisees to tailor their pricing to the specific economic realities of their local markets, potentially increasing their competitiveness and attracting more members. However, franchisees must balance this flexibility with the need to maintain brand consistency and adhere to C12 Group's standards. The requirement for advance review of pricing changes and approval of form modifications ensures that C12 Group retains some control over the pricing and member experience, even while allowing for local adaptation.
It is important to note that while franchisees are responsible for invoicing and collecting registration and membership fees from their members, they must still pay C12 Group royalty fees based on their membership roster and billings, regardless of whether they actually collect the fees from their members. This means that franchisees bear the risk of non-payment from their members and must implement effective collection policies and standards.