How does C12 Group handle advertising costs?

According to the 2025 C12 Group Franchise Disclosure Document, advertising costs are expensed as they are incurred. C12 Group maintains a program of brand advertising and publicity to drive leads to franchisees through its website and other channels. The franchisor shares leads for a franchisee's territory as they are received through the website, emails, sponsorships, and telephone inquiries. C12 Group also provides franchisees with sample formats and artwork to assist with local marketing efforts.

C12 Group supports a franchisee's marketing and promotions by reimbursing amounts from a Prepaid Marketing Fund for initiatives that directly promote the formation of new C12 Forums in the franchisee's territory. Franchisees incur expenses for qualified initiatives and submit receipts for reimbursement. Reimbursement is limited to the amount in the Prepaid Marketing Fund, which the franchisee pays upon executing the agreement. Qualified expenditures include direct mail campaigns, lead list procurement, local advertising, banners, event sponsorships, and e-marketing. Franchisees must follow the C12 Brand Standards Guide in all advertising and marketing efforts.

Items that do not qualify for reimbursement from the Prepaid Marketing Fund include software related to contact or customer relationship management, recurring subscriptions, food and beverage, catering, organizational membership dues, space rental, audio-visual equipment, and general supplies. Franchisees can spend on non-qualifying marketing items, but these expenses are at their own cost and not subject to reimbursement. The franchisee must spend the full Prepaid Marketing Fund within 18 months of the agreement's execution, and any unspent amounts are forfeited to C12 Group. C12 Group also pays a share of certain marketing expenses, termed "C12 Marketing Co-op Expenses," at a rate equal to the franchisee's monthly Royalty Fee (17.5-30%). These expenses are specifically approved and administered by C12 Group and may include direct mail campaigns and franchisor-endorsed lead lists. Franchisees must submit a request form for these expenses, which C12 Group will review and approve for payment.