Are initial franchisee fees refundable for C12 Group?
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, which is refundable prior to the start of training, 4) continuing fees ba
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, initial franchisee fees are generally non-refundable. However, there is an exception regarding the training and support fee.
The document states that franchise agreements require the franchisee to pay several fees, including an initial non-refundable territory fee of $25,000 per franchise unit and a prepaid marketing deposit of $10,000. It also mentions a training and support fee ranging from $10,000 to $12,500, which is refundable prior to the start of training.
This means that while the initial territory fee and prepaid marketing deposit are non-refundable, a franchisee can receive a refund of the training and support fee if they cancel before the training commences. This is a notable exception to the general rule of non-refundability and could be an important consideration for prospective C12 Group franchisees.