What is the minimum payment required for territory expansion with C12 Group?

According to C12 Group's 2025 Franchise Disclosure Document, a franchisee seeking to expand their territory after the initial purchase will need to make a payment for each additional unit of market potential. This is calculated as described in Item 5 and Item 7 of the FDD. The prevailing discounted franchise fee for territory expansion is currently $20,000 per unit. However, C12 Group specifies a minimum payment of $2,500 for any territory expansion.

This means that even if the additional market potential calculates to less than $2,500 based on the $20,000 per unit rate, the franchisee must still pay a minimum of $2,500 to expand their territory. This minimum payment likely covers C12 Group's administrative and processing costs associated with the expansion, regardless of the territory size.

For a prospective C12 Group franchisee, this implies that any plans for territory expansion should factor in both the per-unit cost and this minimum payment. It would be prudent to carefully evaluate the market potential of any expansion area to determine the actual cost and ensure it aligns with the franchisee's business goals and financial capabilities. Understanding the unit calculation methods described in Items 5 and 7 is crucial for accurate cost assessment.