What is the frequency of the C12 Group Royalty Fee payments?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
as they may be revised from time to time in Franchisor's sole discretion. Currently, these obligations of Franchisee include the
following:
- a. Franchisee shall submit a monthly Area Chair Activity and Payment Report via the reporting system to Franchisor by the fifth (5th) business day of each month for the preceding month's activity. Franchisee shall pay Franchisor a late fee of $100 each time this report is late. Any unpaid Royalty Fees past-due greater than thirty (30) days will be subject to a monthly compounded interest rate of 1.5% or the maximum interest rate allowed by law. Late fees and interest shall be paid in conjunction with Franchisee's payment of Royalty Fees. In addition, if Franchisee requires a change to a monthly Area Chair Activity and Payment Report (not due to Franchisor's system error) after the fifth (5th) day of the following month, Franchisee must pay Franchisor a $99 fee to correct such error(s).
- b.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees are required to pay Royalty Fees on a monthly basis. Specifically, the franchisee must submit a monthly Area Chair Activity and Payment Report to C12 Group by the fifth business day of each month, detailing the previous month's activities.
Franchisees are obligated to pay all fees due to C12 Group via ACH, check, or credit card (with the franchisee covering any transaction fees). These payments must be received by C12 Group by the fifth day of the month. C12 Group retains the right to modify the due dates and methods of payment for all payments required under the agreement.
It's important to note that C12 Group assesses a late fee of $100 for each late report submission. Additionally, any unpaid Royalty Fees that are past due for more than thirty days will incur a monthly compounded interest rate of 1.5%, or the maximum interest rate allowed by law. These late fees and interest are to be paid alongside the regular Royalty Fee payments.