What is the purpose of the C12 Group Prepaid Marketing Fund?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
other advertising cooperatives or councils in place.
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- Performing marketing and promotions in your Territory by spending the Prepaid Marketing Fund on initiatives that directly promote the formation of new C12 Business Forums in your Territory. Prepaid Marketing expenditures that qualify for payment include C12 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 emarketing. The use of the Prepaid Marketing Fund and percentage used for different approved expenditures vary for each individual practice and Chair. You are to follow the C12 Brand Standards Guide. Items which do not qualify include software related to contact or customer relationship management, regular subscriptions (e.g., Constant Contact), foodand beverage, catering, organizational membership dues, space rental for events or meetings, audio-visual equipment, and general supplies. Upon your submission of written requests with applicable documentation, C12 will reimburse you for your out-of-pocket expenditures on qualifying Prepaid Marketing Expenditures up to the limit of the balance available in the Prepaid Marketing Fund. C12 will make payments directly to vendors in the cases where C12 administers the marketing initiative on your behalf. You are not precluded from spending on non-qualifying marketing items or spending amounts greater than the $10,000 Prepaid Marketing Fund, but such costs will be borne solely by you. 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,
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the Prepaid Marketing Fund is used to perform marketing and promotions within a franchisee's territory. The purpose of these activities is to directly promote the formation of new C12 Business Forums in that territory.
Qualifying expenditures for the Prepaid Marketing Fund include C12 Direct Mail Campaigns related to introductory events, procurement of lead lists, local advertising, banners, event sponsorships, and emarketing. However, certain items do not qualify for reimbursement, such as software for contact or customer relationship management, regular subscriptions like Constant Contact, food and beverage, catering, organizational membership dues, space rental for events, audio-visual equipment, and general supplies.
C12 Group requires franchisees to spend the full prepaid marketing fund within 18 months of the franchise agreement's execution. Any unspent amounts will be forfeited after that date. While franchisees can spend on non-qualifying items or exceed the $10,000 Prepaid Marketing Fund, they will bear those costs themselves. C12 Group will provide periodic financial statements for the Prepaid Marketing Fund upon request and audits the account monthly. C12 Group also uses the fund to solicit new franchisees.