What is the nature of the financial performance representation provided by C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| u. Dispute resolution by arbitration or mediation | XII, Exhibit F | All matters can be appealed up through C12’s defined three-step dispute resolution process which culminates in Christian arbitration pursuant to which the parties engage three Bible-believing Christian arbitrators as follows: one selected by the franchisee, one selected by C12, and one selected by such two arbitrators. The remedy recommended by the arbitration panel will be binding and final with no further recourse by either party. Subject to state law. |
|---|---|---|
| v. Choice of forum | XII, Exhibit F | Litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures (subject to applicable state law). |
| w. Choice of Law | XII | Texas law will govern (subject to applicable state law). |
| C12 Franchisees | ||
| Total Revenue | ||
| January 1, 2024 to December 31, 2024 | ||
| Total Revenue | $44,250,036 | Reported by 65 franchisees. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, Item 19 contains information regarding the financial performance of C12 Group franchisees. The FDD states that as of December 31, 2024, 67 C12 Forum businesses were open and operating, all run by franchisees. The financial performance representation is based on the 65 franchisees that operated from January 1, 2024, to December 31, 2024, excluding the two that opened during that year.
The FDD specifies that the data provided is a historical financial performance representation, reflecting the "Total Revenue" earned by these 65 franchisees. Total Revenue is defined as all revenue received from member registration fees and monthly dues without any deductions. For the period between January 1, 2024 and December 31, 2024, the total revenue reported by these 65 franchisees was $44,250,036. The FDD also notes that these figures were reported by the franchisees themselves and have not been audited or independently verified by C12 Group.
The FDD cautions that individual results may vary, and there is no assurance that a new franchisee will earn as much as the amounts represented. Prospective franchisees should also note that some early franchisees have different Royalty Fee percentages, although the FDD states that these differences do not affect the Total Revenue earned. C12 Group will provide written substantiation for the financial performance representation to prospective franchisees upon reasonable request. The FDD also indicates that C12 Group does not authorize its employees or representatives to make any financial performance representations other than what is included in Item 19, with the exception of providing the actual records of an existing outlet if a franchisee is considering buying it.