Where is the C12 Group Prepaid Marketing Fund amount specified in the agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
counting 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, whi
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the prepaid marketing deposit is specified in Item 22, under the summary of significant accounting policies. Franchise agreements require the franchisee to pay a prepaid marketing deposit of $10,000. This deposit is part of the initial fees required to be paid by the franchisee.
This prepaid marketing fund is used to support the franchisee's marketing and promotions within their territory. The franchisee incurs expenses for qualified marketing initiatives and submits receipts to C12 Group for reimbursement from this fund. Qualified expenditures include direct mail campaigns, lead list procurement, local advertising, and event sponsorships.
The franchisee must spend the full Prepaid Marketing Fund within eighteen (18) months of the execution of the agreement. Any unspent amounts of the Prepaid Marketing Fund as of such time will be forfeited to C12 Group. This encourages franchisees to actively engage in marketing efforts to promote the formation of new C12 Forums in their territory.