What was the range of the new member registration fee for The C12 Group before July 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ith accounting 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 train
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, prior to July 2023, franchisees were required to pay a new member registration fee ranging from $250 to $425, depending on the membership type. This fee is paid by the franchisee to C12 Group for each new member registered in the franchisee's business. These fees are intended to cover the costs of start-up materials. Franchisees must submit the fees with the new member registrations to C12 Group to receive a New Member Kit.
After July 2023, the new member registration fee increased to a range of $300 to $500. While franchisees can set their own registration and monthly membership fees based on local market conditions, any pricing changes must be reviewed in advance with C12 Group. The franchisee is responsible for invoicing and collecting these fees from their members, but they must pay C12 Group royalty fees based on their membership roster and billings, regardless of whether they actually collect the fees from their members.
It is important to note that the franchisee may charge members more than the member registration fee that the franchisee pays to C12 Group. This difference can potentially provide an additional revenue stream for the franchisee. The FDD also mentions recommended pricing for CEO Peer Advisory Group membership dues at $1,400 and Key Players Group membership dues at $700, excluding one-on-one sessions, suggesting a broader pricing structure within which the registration fee operates.