What are all the initial fees a C12 Group franchisee must pay as outlined in Item 5?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
counting principles generally accepted in the United States (GAAP). The financial statements were presented on a consolidated basis and all significant intercompany accounts and transactions eliminated.
Revenue Recognition: A majority of the Company's revenues are derived from franchise fees. Franchise agreements generally require the franchisee to pay 1) an initial non-refundable territory fee of $25,000 per franchise unit, 2) a prepaid marketing deposit of $10,000, 3) a training and support fee of $10,000 to $12,500, whi
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees must pay several initial fees. These include an initial non-refundable territory fee of $25,000 per franchise unit. Additionally, there is a prepaid marketing deposit of $10,000. Franchisees also pay a training and support fee ranging from $10,000 to $12,500, which is refundable if training has not yet started. Franchisees are also responsible for paying a new member registration fee ranging from $300 to $500.
These initial fees cover various aspects of setting up and running a C12 Group franchise. The territory fee grants the franchisee the right to operate within a specific area. The marketing deposit is used to promote the formation of new C12 Forums. The training and support fee covers the cost of the intensive five-week training program and ongoing support. The new member registration fee covers start-up costs and materials for each new member.
Prospective franchisees should note that the initial territory fee is non-refundable, while the training and support fee is refundable prior to the start of training. The prepaid marketing fund must be spent within eighteen months of the agreement, or any unspent amounts will be forfeited to C12 Group. Also, the new member registration fee increased from $250-$425 to $300-$500 in July 2023.
It is important for potential franchisees to carefully consider these fees and their implications before investing in a C12 Group franchise. Understanding the purpose and conditions of each fee can help franchisees plan their finances and manage their business effectively. Franchisees should also inquire about any potential changes to these fees and how they may impact their overall investment.