If a C12 Group franchisee offers a money-back guarantee, who shares the cost of the refund?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may, but is not required to, offer a 'money-back guarantee' to new members which offers the following: if they, as a member in good standing (i.e., met C12's attendance, participation, and on-time payment criteria over twelve (12) months, as certified by Franchisee) conclude after a full year as a C12 member that they did not receive value (both temporal and eternal) in excess of their accumulated fees over that same period, then Franchisee will provide them with a full refund of the monthly dues they have paid as they terminate Business Forum membership.
If Franchisee offers such a guarantee and keeps necessary records and certifies the applicable member's 'member in good standing' status over the twelve (12) month period, Franchisor will evenly share the cost of reimbursing the member's monthly fees with Franchisee.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees have the option, but are not required, to offer a money-back guarantee to new members. This guarantee stipulates that if a member in good standing (meeting attendance, participation, and on-time payment criteria over 12 months, as certified by the franchisee) feels they did not receive value exceeding their accumulated fees after a full year, the franchisee will refund their monthly dues upon termination of their Business Forum membership.
If a C12 Group franchisee chooses to offer this money-back guarantee and maintains the necessary records to verify a member's good standing over the 12-month period, the cost of reimbursing the member's monthly fees will be evenly shared between the C12 Group franchisor and the franchisee. This shared cost arrangement is contingent upon the franchisee's adherence to record-keeping and certification requirements.
This arrangement could be beneficial for franchisees as it reduces the financial burden of offering a money-back guarantee, potentially making it a more attractive option for acquiring new members. However, franchisees must carefully manage member records and ensure compliance with the good standing criteria to qualify for the cost-sharing arrangement with C12 Group. Franchisees should consider the administrative overhead and potential financial exposure when deciding whether to offer the money-back guarantee.