Who is responsible for invoicing and collecting registration fees and membership fees from members for a C12 Group franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the franchisee is solely responsible for invoicing and collecting registration and membership fees from their members. The franchisee is also responsible for setting their own collections policies and standards. This means that C12 Group franchisees have control over how they manage their revenue collection from members.
While the franchisee has the autonomy to set registration and membership fees based on local economic conditions, these pricing changes must be reviewed in advance with C12 Group. Additionally, any modifications to member application or covenant forms must be approved by C12 Group. This ensures that the franchisee's pricing and member agreements align with C12 Group's overall standards and community functionality.
It is important to note that the franchisee's royalty fee to C12 Group is based on the membership roster and billings, regardless of whether the franchisee actually collects the registration or membership fees from its members. This means that the franchisee is obligated to pay royalties to C12 Group even if members fail to pay their fees. Therefore, effective collections policies are crucial for a C12 Group franchisee to maintain profitability.