What were the initial franchise fees for The C12 Group, LLC in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ith accounting 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, which is refundable prior to the start of training, 4) continuing fees based upon a percentage of monthly member bill
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreements in 2023 required franchisees to pay several initial fees. These included a non-refundable territory fee, a prepaid marketing deposit, and a training and support fee. The initial non-refundable territory fee was $25,000 per franchise unit. Additionally, franchisees had to pay a prepaid marketing deposit of $10,000. The training and support fee ranged from $10,000 to $12,500, but this fee was refundable if the franchisee canceled before training began.
In summary, the total initial fees for a C12 Group franchise in 2023 consisted of the territory fee, the marketing deposit, and the training fee. The initial territory fee was $25,000, the marketing deposit was $10,000, and the training fee ranged from $10,000 to $12,500. Therefore, the total initial investment ranged from $45,000 to $47,500, not including other potential costs such as the new member registration fee.
It is important to note that the FDD also mentions a new member registration fee. This fee ranged from $250 to $425 initially, but increased to $300 to $500 in July 2023. This fee is separate from the initial franchise fees and is paid for each new member registered with the franchisee's business. Prospective franchisees should consider this additional cost when evaluating the overall investment required to start a C12 Group franchise.