How much did C12 Group collect in initial fees in 2024?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
counting principles generally accepted in the United States (GAAP). The financial statements were presented on a consolidated basis and all significant intercompany accounts and transactions eliminated.
Revenue Recognition: A majority of the Company's revenues are derived from franchise fees. Franchise agreements generally require the franchisee to pay 1) an initial non-refundable territory fee of $25,000 per franchise unit, 2) a prepaid marketing deposit of $10,000, 3) a training and support fee of $10,000 to $12,500, which is refundable prior to the start of training, 4) continuing fees based upon a percentage of monthly member billings ranging from 12% to 30%, and 5) a new member registration fee ranging from $300-500. Franchise agreements are renewed annually with no additional charges.
When a franchise is sold, the Company agrees to provide certain services to the franchisee, including assisting with site selection, training, reference and promotional materials and assist
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 C12 Group Franchise Disclosure Document, the document does not explicitly state the total amount of initial franchise fees collected by C12 Group in 2024. However, it does detail the components of the initial fees franchisees are required to pay. These include an initial non-refundable territory fee of $25,000 per franchise unit, a prepaid marketing deposit of $10,000, and a training and support fee ranging from $10,000 to $12,500, which is refundable prior to the start of training.
Additionally, franchisees must pay continuing fees based on a percentage of monthly member billings, ranging from 12% to 30%, and a new member registration fee ranging from $300 to $500. The initial territory fees are recognized as revenue when C12 Group has completed substantially all initial services under the franchise agreement.
To determine the total initial fees collected in 2024, a prospective franchisee should ask C12 Group directly for this information. This figure would depend on the number of new franchises sold during that year and the specific fees collected from each franchisee.