What section of the Franchise Agreement covers the C12 Direct Mail Campaign?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
C12 will conduct on your behalf a turnkey direct mail campaign as one means to generate prospects for these initial meetings (hereinafter "C12 Direct Mail Campaign") (FA Section III).
C12 has arranged for mailing lists, a contracted mail house, marketing materials, and options for letter format and style from which you may select when you order a C12 Direct Mail Campaign in conjunction with your first Introductory Event.
C12 will subsidize and co-op a portion of your campaign's cost (i.e., currently 17.5-30% based on your prevailing monthly royalty fee as a % of billings), as further described in 14 below (FA Section III), and the balance of the cost will be paid from the Prepaid Marketing Fund that has been designated from your Initial Franchise Fee.
If you order any additional C12 Direct Mail Campaigns after your Introductory Event, C12 will continue to subsidize and co-op a portion of your campaign's cost (i.e., based on your prevailing monthly royalty fee as a % of billings), as further described in 14 below (FA Section III).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the C12 Direct Mail Campaign is covered in Section III of the Franchise Agreement. C12 Group will conduct a turnkey direct mail campaign to generate prospects for initial meetings. C12 Group arranges for mailing lists, a contracted mail house, marketing materials, and options for letter format and style.
C12 Group subsidizes a portion of the campaign's cost, specifically between 17.5% and 30% based on the franchisee's prevailing monthly royalty fee as a percentage of billings. The balance of the cost is paid from the Prepaid Marketing Fund, which is designated from the Initial Franchise Fee. If a franchisee orders additional C12 Direct Mail Campaigns after the introductory event, C12 Group will continue to subsidize a portion of the cost based on the franchisee's prevailing monthly royalty fee percentage against billings.
Furthermore, Prepaid Marketing expenditures that qualify for payment include C12 Direct Mail Campaigns related to C12 introductory events or meetings, procurement of qualifying lists of leads, local advertising, banners and other displays for exhibiting, event sponsorships, and emarketing. For the purpose of promoting the formation of new C12 forums, C12 Group requires franchisees to spend the full prepaid marketing fund within 18 months of the execution of this agreement, and any unspent amounts will be forfeited as of that date.