How much is the prepaid marketing deposit required for a C12 Group franchise?
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, whi
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees are required to pay a prepaid marketing deposit of $10,000. This deposit is intended to support the franchisee's marketing and promotional activities within their territory, specifically for initiatives that promote the formation of new C12 Forums.
The FDD specifies how these funds can be used. After commencing operations, C12 Group will reimburse franchisees for expenses related to qualified marketing expenditures. These include direct mail campaigns for introductory events, procurement of lead lists, local advertising, banners, displays for event sponsorships, and e-marketing. Franchisees must submit receipts and documentation to C12 Group for reimbursement.
It is important to note that not all marketing expenses qualify for reimbursement from the prepaid marketing fund. Expenses such as software for contact or customer relationship management, recurring subscriptions, food and beverage, catering, organizational membership dues, space rental, audio-visual equipment, and general supplies are not reimbursable. Franchisees are free to spend on these items, but they will not be reimbursed for these expenses.
The FDD also states that franchisees must spend the full prepaid marketing fund within eighteen months of executing the franchise agreement. Any unspent amounts after this period will be forfeited to C12 Group. C12 Group will provide franchisees with a periodic accounting of the amounts spent from and remaining in the Prepaid Marketing Fund.