Is the C12 Group Marketing Co-op an advertising cooperative between C12 Group franchisees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
and any unspent amounts will be forfeited as of that date.
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- Maintaining a C12 Marketing Co-op whereby C12 will pay a share of the cost of C12 marketing expenses both including the expenses related to the Prepaid Marketing Fund and all other eligible C12 marketing expenses at a rate equal to your applicable Monthly royalty fee %. This is a cooperative between you and C12 and not an advertising or marketing cooperative between you and other C12 franchisees.
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- The C12 marketing expenses related to marketing activities and items are those specifically approved and administered by C12, which include C12 Direct Mail Campaigns and C12 endorsed lead lists (e.g., InfoUSA). Upon your submission of a C12 Marketing Co-op Request Form with applicable documentation, C12 will review, approve, and make payment accordingly.
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Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the C12 Marketing Co-op is not an advertising or marketing cooperative between C12 Group franchisees. Instead, it is a cooperative between the franchisee and C12 Group itself. C12 Group will pay a share of the franchisee's C12 Group marketing expenses, including expenses related to the Prepaid Marketing Fund and other eligible marketing expenses, at a rate equal to the franchisee's applicable monthly royalty fee percentage.
The C12 Group marketing expenses related to marketing activities and items are those specifically approved and administered by C12 Group. These include C12 Direct Mail Campaigns and C12 endorsed lead lists. To receive payment, franchisees must submit a C12 Marketing Co-op Request Form with applicable documentation for C12 Group to review, approve, and make payment accordingly.
Furthermore, the FDD states explicitly that there are no advertising or marketing cooperatives among franchisees and no advertising council that advises C12 Group with respect to its advertising. C12 Group primarily uses its in-house staff to develop advertisements but may retain advertising or marketing firms and/or graphic design artists to contribute to any particular campaign. This clarifies that franchisees do not collaborate or pool resources for advertising purposes.