What is required when a C12 Group franchisee makes pricing changes to member fees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may set its own registration fees and monthly member fees that Franchisee charges members based on local economics.
Such pricing changes must be reviewed in advance with Franchisor, and any modifications to member application/covenant forms must be approved by Franchisor and continue to provide Franchisor with the information necessary to sustain community functionality and value for C12 members.
Franchisor must receive both registration form and payment before a New Member Kit or binder will be sent to Franchisee to, in turn, provide to any new C12 member(s).
While Franchisee's monthly Royalty Fee is established solely based on each month's membership roster and billings, Franchisee is solely responsible for invoicing and collecting registration fees and membership fees from Franchisee's members and setting collections policies and standards.
Franchisee will pay Franchisor Royalty Fees based on Franchisee's membership roster and billings regardless of whether Franchisee actually collects the registration and/or membership fees from its members.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees have the flexibility to set their own registration and monthly member fees based on local economic conditions. However, any pricing changes must be reviewed in advance with C12 Group.
In addition to the pricing review, any modifications to member application or covenant forms must be approved by C12 Group. These forms must continue to provide C12 Group with the information necessary to sustain community functionality and value for C12 members.
While franchisees are responsible for invoicing and collecting registration and membership fees from their members and setting their own collections policies, they must still pay C12 Group royalty fees based on their membership roster and billings, regardless of whether they actually collect those fees from their members. This highlights the importance of careful pricing and collection strategies for C12 Group franchisees.