What is the payment schedule for C12 Group royalty fees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's system error) after the fifth (5th) day of the following month, Franchisee must pay Franchisor a $99 fee to correct such error(s).
- b. Franchisee shall pay Franchisor all fees due under this Agreement via ACH or check (or credit card with Franchisee paying the applicable transaction and processing fees), which must be received by Franchisor by the fifth (5th) day of the month.
- c. Franchisor reserves the right to modify the due dates and methods of payment for all payments due under this Agreement. Franchisor also reserves the right to have any of its staff, officers or Board Directors visit Franchisee's scheduled C12 meetings, given advanced notice, to support Franchisee in Franchisee's effortsto develop strong C12 forums, effectively apply C12 methods and processes, and to encourage Franchisee and Franchisee's members.
- d. Franchisee shall conduct member registration for CEO members and Key Players members by using standard C12 forms and registration payment remittance amounts and methods set forth herein (see fee schedule in Section VI). These standard forms and methods are maintained on the C12 App or via another platform determined by Franchisor for Franchisee's use. Franchisee may set its own registration fees and monthly member fees that Franchisee charges members based on local economics. Such pricing changes must be reviewed in advance with Franchisor, and any modifications to member application/covenant forms must be approved by Franchisor and continue to provide Franchisor with the information necessary to sustain community functionality and value for C12 members. Franchisor must receive both registration form and payment before a New Member Kit or binder will be sent to Franchisee to, in turn, provide to any new C12 member(s).
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees are required to pay all fees due under the agreement via ACH, check, or credit card, with the franchisee covering any transaction and processing fees if paying via credit card. These payments must be received by C12 Group by the fifth day of each month. The royalty fees are based on the franchisee's membership roster and billings, regardless of whether the franchisee has actually collected the registration and/or membership fees from its members.
Franchisees must also submit a monthly Area Chair Activity and Payment Report to C12 Group by the fifth business day of each month, detailing the previous month's activities. A late fee of $100 is charged each time this report is submitted late. Any unpaid royalty fees that are past due for more than thirty days will incur a monthly compounded interest rate of 1.5%, or the maximum interest rate allowed by law. Late fees and interest are to be paid together with the royalty fees.
C12 Group retains the right to modify the due dates and methods of payment for all payments under the agreement. Additionally, if a franchisee needs to change a monthly Area Chair Activity and Payment Report after the fifth day of the following month (and not due to C12 Group's system error), a $99 fee will be charged to correct the error.