How can the Prepaid Marketing Fund be used by C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchisor will provide Franchisee with a periodic accounting of the amounts expended from and remaining in Franchisee's Prepaid Marketing Fund.
For the purpose of promoting the formation of new C12 Forums, Franchisee must spend the full Prepaid Marketing Fund within eighteen (18) months of the execution of this Agreement.
Any unspent amounts of the Prepaid Marketing Fund as of such time will be forfeited to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the Prepaid Marketing Fund is used to support a franchisee's marketing and promotional activities within their territory. The fund is specifically for initiatives that promote the formation of new C12 Forums. Franchisees incur the marketing expenses and then seek reimbursement from C12 Group by submitting receipts and other required documentation. Alternatively, C12 Group may directly pay vendors if they administer a particular marketing initiative. The reimbursement to the franchisee is limited to the amount in the Prepaid Marketing Fund, which the franchisee pays upon executing the franchise agreement.
Qualified expenditures for reimbursement from the Prepaid Marketing Fund include direct mail campaigns for C12 introductory events, procurement of lead lists, local advertising, banners and displays for event sponsorships, and e-marketing including email delivery systems. All advertising and marketing efforts must adhere to C12 Group's Brand Standards Guide.
Expenditures that do not qualify for reimbursement include software related to contact or customer relationship management, recurring subscriptions like Constant Contact, food and beverage, catering, organizational membership dues, space rental for events or meetings, audio-visual equipment, and general supplies. While franchisees can spend on these non-qualifying items, they will not be reimbursed for those expenses. The franchisee must spend the full Prepaid Marketing Fund within 18 months of the execution of the franchise agreement. Any unspent funds after this period will be forfeited to C12 Group. C12 Group will provide the franchisee with periodic accounting of the amounts spent from and remaining in the Prepaid Marketing Fund.