What is the source of the financial figures reported for C12 Group franchisees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| u. Dispute resolution by arbitration or mediation | XII, Exhibit F | All matters can be appealed up through C12’s defined three-step dispute resolution process which culminates in Christian arbitration pursuant to which the parties engage three Bible-believing Christian arbitrators as follows: one selected by the franchisee, one selected by C12, and one selected by such two arbitrators. The remedy recommended by the arbitration panel will be binding and final with no further recourse by either party. Subject to state law. |
|---|---|---|
| v. Choice of forum | XII, Exhibit F | Litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures (subject to applicable state law). |
| w. Choice of Law | XII | Texas law will govern (subject to applicable state law). |
| C12 Franchisees | ||
| Total Revenue | ||
| January 1, 2024 to December 31, 2024 | ||
| Total Revenue | $44,250,036 | Reported by 65 franchisees. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the financial performance representation is based on data reported by C12 Group franchisees. Specifically, the total revenue figures, which amount to $44,250,036, were reported by 65 franchisees. These figures cover the period from January 1, 2024, to December 31, 2024.
It is important to note that C12 Group has not audited or independently verified these figures. This means that the franchisor is relying on the franchisees' self-reported data without conducting their own investigation into the accuracy of the numbers. While this is not uncommon in the franchise industry, prospective franchisees should be aware of this and consider it when evaluating the financial performance representation.
Given that the data is unaudited, potential franchisees should conduct their own due diligence. C12 Group states that written substantiation for the financial performance representation will be made available to prospective franchisees upon reasonable request. This substantiation could provide additional insight into how the revenue figures were calculated and reported. It would be prudent for potential franchisees to request and carefully review this documentation, and possibly consult with a financial advisor, to assess the reliability of the information before making any investment decisions.