What are the specific deadlines and procedures for submitting financial reports to C12 Group, considering the franchisee's obligations outlined in Item 9?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees are required to submit a monthly Area Chair Activity and Payment Report to C12 Group by the fifth business day of each month, covering the previous month's activities. This report is submitted via the reporting system designated by C12 Group. If a franchisee submits the report late, C12 Group will assess a $100 late fee.
In addition to the monthly report, franchisees must pay all fees due to C12 Group via ACH, check, or credit card (with the franchisee covering any transaction and processing fees) and payments must be received 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. If a franchisee needs to change a monthly Area Chair Activity and Payment Report after the fifth day of the following month, and the change is not due to an error in C12 Group's system, the franchisee must pay C12 Group a $99 fee to correct the errors.
It is important to note that 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 are to be paid when the franchisee pays their Royalty Fees. Franchisees should be aware of these deadlines and potential fees to maintain compliance with the franchise agreement and avoid incurring additional costs.