Are C12 Group royalty fees due even if some billings are not actually collected?

According to C12 Group's 2025 Franchise Disclosure Document, franchisees are obligated to pay royalty fees based on their membership roster and billings, irrespective of whether they have actually collected the registration and/or membership fees from their members. This means that C12 Group franchisees must remit royalty payments to the company even if some members fail to pay their dues.

This policy places the responsibility for invoicing and collecting fees squarely on the franchisee. They are in charge of setting their own collection policies and standards. While franchisees have the autonomy to manage collections, they bear the risk of non-payment, as their royalty obligations to C12 Group remain regardless of their collection success.

This arrangement is not uncommon in franchising, where franchisors often base royalties on gross sales or billings rather than actual receipts. This approach simplifies accounting and ensures a consistent revenue stream for the franchisor. However, it's crucial for prospective C12 Group franchisees to factor potential uncollected dues into their financial projections and have a robust collection strategy in place to mitigate this risk.