What were the new member registration fees for The C12 Group, LLC in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ith accounting 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 bill
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, new member registration fees ranged from $250 to $425 until July 2023. After July 2023, the new member registration fee increased to a range of $300 to $500.
For a prospective C12 Group franchisee, this means that the cost to register each new member with the franchisor varied depending on when the member was registered during 2023. For members registered before July, the fee was lower, while those registered after July incurred a higher fee. This fee is paid by the franchisee to C12 Group.
It's important to note that while the FDD specifies the fees the franchisee pays to C12 Group, the franchisee has the liberty to set pricing according to local market conditions and may charge members more than the member registration fee they pay to C12 Group. However, such pricing changes must be reviewed in advance with C12 Group.