Can C12 Group increase the minimum individual membership fees over time?

According to C12 Group's 2025 Franchise Disclosure Document, C12 Group retains the right to increase the minimum individual membership fees over time. The FDD specifies the minimum membership fees for 2025 are $1,100 per CEO and $500 per Key Player. Furthermore, the FDD states that in 2026, these fees will increase to $1,150 per CEO and $550 per Key Player.

This ability to increase minimum membership fees is significant for prospective franchisees because it directly impacts their gross billings, which in turn affects royalty fees paid to C12 Group. Franchisees must be aware that their revenue calculations could be affected by these changes. While increased minimum fees could lead to higher revenue, franchisees need to assess whether their members can absorb these increases without attrition.

The royalty fee that C12 Group franchisees pay is a percentage of their monthly Gross Billings. Gross Billings are the total amount charged for CEO and Key Player memberships, subject to minimum individual membership fees. If a franchisee charges less than the minimum, Gross Billings are calculated using the minimum fees. If they charge more, the actual higher fees are used for the calculation. This system ensures C12 Group receives a royalty based on at least the set minimum, regardless of the franchisee's pricing strategy.

Given that C12 Group can increase the minimum membership fees, prospective franchisees should inquire about the frequency and potential magnitude of these increases. Understanding the long-term fee structure is crucial for accurate financial forecasting and business planning. Franchisees should also consider how these potential fee increases might affect their ability to attract and retain members, and how it compares to similar organizations.