What is the range of the new member registration fee for The C12 Group after 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 training, 4) continuing fees based upon a percentage of monthly member bill
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees are required to pay a new member registration fee. Before July 2023, this fee ranged from $250 to $425 depending on membership type. However, the new member registration fee increased to a range of $300 to $500 in July 2023.
This means that for each new member a C12 Group franchisee recruits after July 2023, they must pay the franchisor a registration fee between $300 and $500. This fee is in addition to other fees such as the initial territory fee, prepaid marketing deposit, training and support fee, and continuing fees based on monthly member billings.
It is important to note that while the franchisee must pay C12 Group the specified registration fee, the franchisee has the liberty to charge members more than the member registration fee they pay to C12 Group. This allows the franchisee to potentially generate additional revenue to cover their costs and increase profitability. Franchisees should consider local market conditions when setting their pricing to remain competitive.
Prospective franchisees should carefully consider these fees and how they will impact their overall profitability. Understanding the fee structure and the flexibility in setting member fees is crucial for developing a successful C12 Group franchise.