How must late fees and interest be paid to C12 Group?

According to C12 Group's 2025 Franchise Disclosure Document, late fees and interest are to be paid in conjunction with the franchisee's payment of royalty fees. The FDD specifies that franchisees must submit a monthly Area Chair Activity and Payment Report to C12 Group by the 5th business day of each month for the prior month's activities. If this report is submitted late, the franchisee will incur a $100 late fee.

Additionally, any unpaid royalty fees that are past due for more than 30 days are subject to a monthly compounded interest rate of 1.5%, or the maximum interest rate allowed by law. The franchisee is required to pay all fees due to C12 Group via ACH or check (or credit card with the franchisee paying the applicable transaction and processing fees), which must be received by C12 Group by the 5th day of the month.

C12 Group retains the right to modify the due dates and methods of payment for all payments due under the agreement. This means that while the current policy requires late fees and interest to be paid with royalty fees, and payments to be made via ACH, check, or credit card, C12 Group could change these requirements in the future. Franchisees should stay informed of any changes to payment policies to avoid penalties or disruptions.