factual

Are C12 Group franchisees obligated to purchase real estate 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 real estate from C12 Group. The only required purchase 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.

Beyond the New Member Registration Kits, C12 Group franchisees are not obligated to purchase or lease any equipment, services, supplies, fixtures, computer equipment and network peripherals, signs, inventory, or real estate from C12 Group or any specified sources during the establishment or operation of their business. This provides franchisees with flexibility in sourcing these items, potentially allowing them to find cost-effective solutions that fit their specific needs and preferences.

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 New Member Registrations are a required purchase, they constitute a relatively small percentage of a franchisee's overall expenses. C12 Group also supplies a start-up supply of printed and electronic materials upon completion of initial training, as well as access to C12 web resources at no additional cost. This support can help franchisees manage their initial costs and ensure they have the necessary resources to start their business.

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.