What is the purpose of events that C12 Group may subsidize marketing costs for?

According to the 2025 C12 Group Franchise Disclosure Document, C12 Group may subsidize the marketing costs for local C12 events, seminars, and awards banquets in a franchisee's local territory when these events are specifically planned with the primary purpose of expanding local C12 membership. The subsidy for these marketing costs, such as a pre-approved turnkey C12 Direct Mail Campaign, is determined by the franchisee's monthly royalty fee percentage against total billings, and is subject to the franchisee's application and C12 Group's approval.

This means that C12 Group franchisees have the opportunity to receive financial assistance from C12 Group to promote events that aim to increase membership within their local territories. The amount of the subsidy is tied to the franchisee's royalty fee percentage, incentivizing higher performance. However, this subsidy is not automatic; franchisees must apply and receive approval from C12 Group, indicating that C12 Group retains control over which events receive funding.

This type of marketing support is beneficial for franchisees as it reduces their financial burden when trying to grow their membership base. It also aligns the franchisee's and franchisor's interests in expanding the C12 Group network. Franchisees should carefully plan their events and marketing strategies to maximize their chances of receiving C12 Group's approval for marketing cost subsidies. Franchisees should also be aware of the specific requirements and application process for these subsidies to ensure compliance and increase their likelihood of approval.