What is the C12 Group's obligation regarding the advertising and publicity program?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising and Publicity Program.
Franchisor will maintain a program of C12 brand advertising and publicity to help drive leads through Franchisor's website and home office to franchisees across the C12 franchise System.
Leads for Franchisee's Territory will be shared with Franchisee as they are received through Franchisor's website, emails, sponsorships and telephone inquiries.
Franchisor will also provide Franchisee with sample formats and artwork to assist with Franchisee's local marketing and advertising efforts via Franchisor's online resources or dedicated outside contractors.
Prepaid Marketing Fund.
After Franchisee commences operation, Franchisor will support Franchisee's marketing and promotions in Franchisee's Territory by reimbursing amounts from the Prepaid Marketing Fund to Franchisee for initiatives that directly promote the formation of new C12 Forums in Franchisee's Territory.
Franchisee shall incur expenses for such initiatives and submit receipts and other evidence as Franchisor may require to Franchisor.
Upon Franchisee's submission of written requests with applicable documentation, Franchisor will reimburse Franchisee for Franchisee's out-of-pocket expenditures relating to qualified expenditures or make payments directly to vendors in the case where Franchisor administers a particular marketing initiative.
Franchisor's reimbursement is limited to the Prepaid Marketing Fund that Franchisee must pay Franchisor upon executing this Agreement.
Prepaid Marketing Fund expenditures that qualify for reimbursement include Direct Mail Campaigns related to C12 introductory events or meetings, procurement of qualifying lists of leads, local advertising, banners, and other displays for exhibiting event sponsorships, and e-marketing including email delivery systems.
Franchisee must follow the C12 Brand Standards Guide in all advertising and marketing efforts.
Items which do not qualify for reimbursement include software related to contact or customer relationship management, recurring subscriptions (e.g., Constant Contact), food and beverage, catering, organizational membership dues, space rental for events or meetings, audio-visual equipment, and general supplies.
Franchisee is not precluded from spending on non-qualifying marketing items, but such expenses will be at Franchisee's own additional cost and not subject to reimbursement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group will maintain a brand advertising and publicity program. This program is designed to generate leads through the C12 Group website and home office, which are then shared with franchisees within their respective territories.
In addition to the corporate advertising efforts, C12 Group also provides franchisees with sample formats and artwork to aid in their local marketing and advertising initiatives. These resources are accessible through C12 Group's online resources or via dedicated outside contractors.
Furthermore, C12 Group supports franchisees' marketing and promotional activities within their territories by reimbursing expenses from a Prepaid Marketing Fund. These reimbursements cover initiatives that directly promote the formation of new C12 Forums. Franchisees must submit receipts and evidence of their expenditures to receive reimbursement, which is limited to the amount in the franchisee's Prepaid Marketing Fund. Qualifying expenditures include direct mail campaigns, lead procurement, local advertising, banners, event sponsorships, and e-marketing. Franchisees are required to adhere to the C12 Brand Standards Guide in all advertising and marketing efforts. Non-qualifying items, such as software, subscriptions, food, and space rental, are not subject to reimbursement but can be pursued at the franchisee's own expense.