How often does C12 Group audit the Prepaid Marketing Fund account?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
C12 will provide you with a periodic Prepaid Marketing Fund financial statement upon your request. C12 audits the Prepaid Marketing Fund account monthly. C12 uses the Prepaid Marketing Fund to solicit for new franchisees. For the purpose of promoting the formation of new C12 forums, C12 requires you spend the full prepaid marketing fund within 18 months of the execution of this agreement, and any unspent amounts will be forfeited as of that date.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group audits the Prepaid Marketing Fund account monthly. This fund is used for marketing and promotions within the franchisee's territory to promote the formation of new C12 Business Forums.
Franchisees are required to spend the full prepaid marketing fund, which amounts to $10,000, within 18 months of the franchise agreement's execution. Any unspent funds will be forfeited after this period. This requirement ensures that franchisees actively engage in marketing efforts to grow their business from the outset.
C12 Group also provides franchisees with a periodic Prepaid Marketing Fund financial statement upon request, allowing franchisees to monitor their fund's activity and expenditures. This transparency, combined with the monthly audits, helps ensure proper management and accountability of the marketing funds.