Which sections of the C12 Group agreement detail the franchisee's obligations regarding fees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Obligations Upon Termination. Upon termination of this Agreement for any reason, Franchisee shall perform the following:
b. Franchisee shall pay Franchisor all past-due amounts plus late fees and interest as applicable.
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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 (5th) day of the month.
- c. Franchisor reserves the right to modify the due dates and methods of payment for all payments due under this Agreement.
- d. Franchisee shall conduct member registration for CEO members and Key Players members by using standard C12 forms and registration payment remittance amounts and methods set forth herein (see fee schedule in Section VI). These standard forms and methods are maintained on the C12 App or via another platform determined by Franchisor for Franchisee's use.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, Section IV.7.b outlines the franchisee's obligation to pay all past-due amounts plus late fees and interest upon termination of the agreement. Additionally, Section IV.7 details specific operational obligations related to fees.
Specifically, franchisees must submit a monthly Area Chair Activity and Payment Report to C12 Group by the fifth business day of each month. A late fee of $100 is charged for each late report. Unpaid Royalty Fees past due for more than thirty days are subject to a monthly compounded interest rate of 1.5%, or the maximum interest rate allowed by law. Late fees and interest are to be paid along with Royalty Fees. Furthermore, a $99 fee is imposed for any changes required to the monthly Area Chair Activity and Payment Report after the fifth day of the following month, unless the change is due to C12 Group's system error.
Franchisees are required to pay all fees due under the agreement via ACH, check, or credit card (with the franchisee covering the transaction and processing fees), with payments to 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. Franchisees are also responsible for conducting member registration for CEO members and Key Players members using standard C12 Group forms and registration payment remittance amounts and methods, as detailed in Section VI and maintained on the C12 App or another platform determined by C12 Group.