Can the C12 Group revise its standard processes, due dates, and payments?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
opportunity to participate in any global C12 web functionality (e.g., search for other members, benchmarking, bulletin board/blog functions, etc.).
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- Specific Operational Obligations. Franchisee shall adhere to and comply with Franchisor's basic business model and its various standard processes, due dates, and payments, as they may be revised from time to time in Franchisor's sole discretion. Currently, these obligations of Franchisee include the
following:
- a. Franchisee shall submit a monthly Area Chair Activity and Payment Report via the reporting system to Franchisor by the fifth (5th) business day of each month for the preceding month's activity. Franchisee shall pay Franchisor a late fee of $100 each time this report is late. Any unpaid Royalty Fees past-due greater than thirty (30) days will be subject to a monthly compounded interest rate of 1.5% or the maximum interest rate allowed by law. Late fees and interest shall be paid in conjunction with Franchisee's payment of Royalty Fees. In addition, if Franchisee requires a change to a monthly Area Chair Activity and Payment Report (not due to Franchisor's system error) after the fifth (5th) day of the following month, Franchisee must pay Franchisor a $99 fee to correct such error(s).
- b. Franchisee shall pay Franchisor all fees due under this Agreement via ACH or check (or credit card with Franchisee paying the applicable transaction and processing fees), which must be received by Franchisor by the fifth
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group has the authority to modify its standard processes, due dates, and payment terms. As stated in Item 22, the franchisee must adhere to C12 Group's basic business model, including standard processes, due dates, and payments, which may be revised periodically at C12 Group's discretion.
Specifically, the franchisee must submit a monthly Area Chair Activity and Payment Report via the reporting system to C12 Group by the fifth business day of each month for the preceding month's activity. If this report is submitted late, the franchisee will be charged a $100 late fee. Additionally, any unpaid royalty fees past due for more than 30 days are subject to a monthly compounded interest rate of 1.5%, or the maximum interest rate allowed by law. If a franchisee needs to change a monthly Area Chair Activity and Payment Report (not due to C12 Group's system error) after the fifth day of the following month, the franchisee must pay C12 Group a $99 fee to correct such errors.
Furthermore, franchisees must pay all fees due under the agreement via ACH or check (or credit card with the franchisee paying the applicable transaction and processing fees), which must be received by C12 Group by the fifth day of the month. C12 Group retains the right to modify the due dates and methods of payment for all payments due under the agreement. This means that C12 Group franchisees must stay informed of any changes to these operational obligations to avoid penalties and maintain compliance with the franchise agreement.