What were the initial franchise fees for The C12 Group, LLC in 2022?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
inancial impact cannot be reasonably estimated at this time.
5. Reclassification
Certain amounts in the 2021 consolidated financial statements have been reclassified to conform to the 2022 presentation.
6. Franchise Fees
The Company executes franchise agreements that set the terms of its arrangement with each franchisee, or Area Chair. The franchise agreements require the franchisee to pay (1) an initial, non-refundable territory fee of $20,000 per franchise unit; (2) a prepaid marketing deposit of $10,000; (3) a training and support fee of $10,000 ($7,500 for Associate Chairs), which is r
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the initial franchise fees consist of several components. In 2022, franchisees were required to pay an initial non-refundable territory fee of $20,000 per franchise unit. In addition to the territory fee, franchisees also had to pay a prepaid marketing deposit of $10,000. A training and support fee of $10,000 was also required ($7,500 for Associate Chairs), which is refundable prior to the start of training.
These fees cover the initial costs associated with setting up a C12 Group franchise. The initial territory fee is non-refundable, meaning that a franchisee will not receive this money back under any circumstances. The prepaid marketing deposit is likely used for initial marketing efforts to promote the new franchise. The training and support fee covers the costs of training new franchisees and providing them with ongoing support. Associate Chairs receive a discounted training and support fee.
Prospective franchisees should note that these initial fees are just the beginning. The FDD also mentions continuing fees based on a percentage of monthly member billings, ranging from 17.5% to 30%, and new member registration fees ranging from $250 to $425 depending on membership type. Understanding the full scope of these fees is crucial for assessing the financial viability of a C12 Group franchise.