What happens if the price of materials increases above current costs for a C12 Group franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. Fees Subject to Change. Franchisor's Training and Materials fees are subject to change in the event that the price of materials increases above current costs. In the event that Training and Material fees increase, Franchisee must pay Franchisor the then-current fees.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the training and materials fees are subject to change if the price of materials increases above current costs. In such an event, the franchisee is obligated to pay the then-current fees to C12 Group.
This means that a C12 Group franchisee's costs for training and materials are not fixed and can increase during the franchise term. This is a fairly standard practice in franchising, as franchisors need to account for fluctuations in their own expenses.
Prospective franchisees should factor in the possibility of increased training and material costs when evaluating the potential profitability of a C12 Group franchise. It would be prudent to inquire about the historical frequency and magnitude of such fee adjustments to better understand the potential financial impact.