factual

Are C12 Group franchisees obligated to purchase computer equipment from C12?

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 generally not required to purchase or lease equipment, services, supplies, fixtures, computer equipment, network peripherals, signs, inventory, or real estate from C12 Group or any specified sources during the establishment or operation of their business. The only required purchase from C12 Group is the New Member Registration Kits when a new member joins a franchisee's C12 Forum. Franchisees pay a flat fee to C12 Group for each CEO Member and Key Player Member and then charge that fee (or a greater fee) to the members.

This policy provides C12 Group franchisees with flexibility in sourcing various operational needs, potentially allowing them to find cost-effective solutions that suit their specific circumstances. The freedom to choose suppliers for items like computer equipment can lead to better deals and customized setups. However, franchisees must ensure that any equipment or services sourced independently still meet C12 Group's brand standards and operational requirements.

During the fiscal year ending December 31, 2024, C12 Group received $458,500 from required franchisee purchases of New Member Registrations, which represented 5.8% of their total revenue of $7,852,914. This indicates that while franchisees have purchasing flexibility, the New Member Registration Kits are a notable revenue stream for C12 Group. Franchisees should factor in the cost of these kits when projecting their expenses and revenue.

While C12 Group does not mandate specific suppliers for most items, franchisees must adhere to brand standards and operational guidelines. This may indirectly influence purchasing decisions to ensure consistency and quality across the C12 Group network. Franchisees should carefully review the Franchise Operations Manual and Brand Standards Guide to understand these requirements and make informed purchasing choices.

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.