Does C12 Group have the right to negotiate 'enterprise' relationships with national brands?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- g. Corporate and National Accounts and Enterprise Pricing. Franchisor shall have the right to negotiate "enterprise" relationships with national brands and that Franchisee agrees to honor such enterprise pricing offered by Franchisor. Examples of the enterprise pricing and benefits that Franchisor may offer are (1) a 10% discount on first-year dues (as determined by the franchisee list price for local market) for new Members from certain organizations and (2) corporately discounted new membership kits and other benefits sponsored by Franchisor (e.g., access to digital products, discounts to events).
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, C12 Group retains the right to negotiate "enterprise" relationships with national brands. As a C12 Group franchisee, you would be obligated to honor the enterprise pricing that C12 Group offers to these national brands.
Examples of enterprise pricing and benefits that C12 Group may offer include a 10% discount on first-year dues, based on the franchisee's list price for the local market, for new members from certain organizations. Additionally, C12 Group may offer corporately discounted new membership kits and other benefits sponsored by C12 Group, such as access to digital products and discounts to events.
This means that while franchisees are responsible for setting their local market prices, C12 Group can mandate discounts or benefits for members affiliated with national brands. As a franchisee, you would need to factor these potential discounts into your financial projections and be prepared to honor them. This could impact your revenue, but it could also attract more members through these national partnerships.