What is the minimum individual membership fee for Key Player Members for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ontinuing through the Term of this Agreement and any renewals thereof, Franchisee shall pay Franchisor the following continuing fees:
- a. Royalty Fees. Franchisee shall pay Franchisor a monthly Royalty Fee equal to a percentage of monthly Gross Billings (including CEO Forums and Key Players Forums) based on a sliding scale as defined below, with payment to be received by Franchisor no later than the fifth (5th) day of the following month based on each month's total membership billings, even if some billings are not actually collected. "Gross Billings" means the actual total amount that Franchisee charges on a monthly basis for its collective CEO Members' and Key Player Members' membership fees subject to the minimum individual membership fees of $1,000 for CEO Members and $475 for Key Player Members. If Franchisee charges its members less than these minimum membership fees, then Franchisee's Gross Billings shall be calculated based on these minimum membership fees multiplied by the respective number of CEO Members and Key Players Members on Franchisee's roster each month. If Franchisee charges more than these minimum membership fees, then Gross Billings shall be based on the higher fees that Franchisee actually charges for
its memberships multiplied by the respective number of CEO Members and Key Players Members on Franchisee's roster.
Franchisor may increase minimum individual membership fees over time
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the minimum individual membership fee for Key Player Members is $500. This minimum fee is relevant because C12 Group franchisees must pay royalty fees based on their members' billings. If a franchisee charges less than $500 for Key Player Members, the royalty fees owed to C12 Group will still be calculated as if the franchisee charged the minimum amount.
This policy ensures that C12 Group receives a consistent revenue stream based on a baseline membership value, regardless of any discounting a franchisee might offer in their local market. The franchisor retains the right to increase these minimum individual membership fees over time. For example, the FDD states that in 2026, the minimum fee will increase to $550 per Key Player Member.
For a prospective franchisee, this means that their revenue and royalty obligations are somewhat protected by these minimums. However, it also means they cannot deeply discount memberships to attract a higher volume of members, as their royalty payments will not reflect those discounts. Franchisees need to carefully consider their local market conditions and pricing strategies in light of these minimum fee requirements to ensure profitability.
It's important to note that while franchisees can charge more than the minimum, they must have any pricing changes reviewed in advance with C12 Group. This ensures that the pricing aligns with the overall brand strategy and value proposition of C12 Group memberships.