What is the range of the Franchise Fee that a C12 Group franchisee must pay before commencing operations?
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, which is refundable prior to the start of training, 4) continuing fees based upon a percentage of monthly member billings ranging from 12% to 30%, and 5) a new member registration fee ranging from $300-500. Franchise agreements are renewed annually with no additional charges.
When a franchise is sold, the Company agrees to provide certain services to the franchisee, including assisting with site selection, training, reference and promotional materials and assist
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees must pay several fees before commencing operations. These include an initial non-refundable territory fee of $25,000 per franchise unit, a prepaid marketing deposit of $10,000, and a training and support fee ranging from $10,000 to $12,500. Therefore, the total initial fees range from $45,000 to $47,500. These fees cover various aspects of setting up the franchise, such as securing the territory, initial marketing efforts, and training programs.
In addition to these initial fees, C12 Group franchisees also pay ongoing fees. These include continuing fees based on a percentage of monthly member billings, ranging from 12% to 30%, and a new member registration fee ranging from $300 to $500. These ongoing fees support the continued operation and growth of the franchise by covering services and support provided by C12 Group.
The training and support fee is refundable prior to the start of training, which offers some financial flexibility for new franchisees. The initial territory fees are recognized as revenue by C12 Group when substantially all initial services under the franchise agreement are completed. This means C12 Group recognizes the revenue after providing assistance with site selection, training, and providing reference and promotional materials. Franchise agreements are renewed annually with no additional charges, providing stability in the franchise agreement terms.