What is the refund amount a C12 Group member receives under the money-back guarantee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may, but is not required to, offer a 'money-back guarantee' to new members which offers the following: if they, as a member in good standing (i.e., met C12's attendance, participation, and on-time payment criteria over twelve (12) months, as certified by Franchisee) conclude after a full year as a C12 member that they did not receive value (both temporal and eternal) in excess of their accumulated fees over that same period, then Franchisee will provide them with a full refund of the monthly dues they have paid as they terminate Business Forum membership.
If Franchisee offers such a guarantee and keeps necessary records and certifies the applicable member's 'member in good standing' status over the twelve (12) month period, Franchisor will evenly share the cost of reimbursing the member's monthly fees with Franchisee.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group FDD, franchisees have the option to offer a money-back guarantee to new members. If a member in good standing (meeting attendance, participation, and on-time payment criteria certified by the franchisee) concludes after a full year that they did not receive value exceeding their accumulated fees, the franchisee will provide a full refund of the monthly dues the member paid.
If the franchisee offers this guarantee and maintains the necessary records to certify the member's good standing over the 12-month period, C12 Group will share the cost of reimbursing the member's monthly fees evenly with the franchisee. This means that the franchisee is not solely responsible for the refund, as the franchisor will cover 50% of the cost.
This money-back guarantee can be a valuable tool for C12 Group franchisees to attract new members by reducing their perceived risk. However, it also places an administrative burden on the franchisee to track member attendance, participation, and payment history to ensure eligibility for the guarantee. Franchisees should carefully consider the potential costs and benefits of offering this guarantee before implementing it in their business.