What is the minimum Franchise Fee for a territory less than 1 Franchise Unit for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise Fee as set forth below. The Franchise Fee varies based on the target market potential of the designated Territory for the Franchised Business. Franchise Units are $25,000 (with Franchise Unit otherwise already defined from a calculation basis) per 1.0 unit (Territories comprising between 0.9 and 1.1 units count as one (1) unit). Franchisor will determine the number of units that Franchisee's Territory constitutes. If a defined territory for purchase is less than or more than one (1) unit, the Franchise Fee shall be the number of units multiplied by $25,000 but no less than $12,500. For example, a metropolitan market with a defined territory containing an estimated 1.3 units worth of eligible members would result in a $32,500 Franchise Fee. On the other hand, a rural or less densely populated market representing 0.65 units would result in a $16,250 Franchise Fee. A Territory of 0.92 units would still consist of a $25,000 Franchise Fee whereas a market with 0.47 units would consist of
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the Franchise Fee varies based on the target market potential of the designated Territory. If a defined territory for purchase is less than one unit, the franchise fee will be the number of units multiplied by $25,000, but no less than $12,500. For example, a market representing 0.47 units would consist of a $12,500 Franchise Fee ($12,500 being the minimum). Therefore, the minimum franchise fee for a territory less than 1 franchise unit is $12,500.
This means that even if a prospective C12 Group franchisee chooses a smaller, less densely populated territory, they will still need to pay a minimum franchise fee of $12,500. This fee grants the franchisee the right to operate within that specific territory and access the C12 Group's resources and support. The franchise agreement considers territories comprising between 0.9 and 1.1 units as one unit, with a franchise fee of $25,000.
It is important to note that the Franchise Fee is generally non-refundable, as it compensates C12 Group for granting the franchise rights and providing initial services. The franchisee should carefully evaluate the market potential of the territory and their ability to generate sufficient revenue to justify the initial investment, including the franchise fee. Additionally, the franchisee must also pay a $10,000 Prepaid Marketing Fund fee and a Training/Technology Fee of $12,000 for the franchisee and $10,000 for any additional Associate Chair(s).