What is the term length that the C12 Group franchisee must pay continuing fees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ll ensure compliance with this by returning
these materials to Franchisor or, if Franchisor directs, destroying them.
II. Term and Renewal
The Term of this Agreement begins upon the execution hereof and continues through December 31st of the calendar year following the year in which this Agreement is executed. For example, if this Agreement is executed on May 31, 2024, the Term shall expire on December 31, 2025. Unless sooner terminated, as hereafter provided, the Term of this Agreement is meant to be renewed each calendar year for additional one-year Renewal Terms (with each Renewal Term being one calendar year) so long as (i) both Franchisor and Franchisee agree to such renewal, (ii) Franchisee remains active in operating the Franchised Business, and (iii) Franchisee is in good standing under this Agreement. Being in good standing requires Franchisee to remain in compliance with the terms of this Agreement and Franchisee's agreement to any updates or changes in Franchisor's business model and Operations Manual that have occurred during the prior year. Any changes made in Franchisor's business model will be made at Franchisor's sole discretion and based on Franchisor's belief that the changes will strengthen the overall platform and enhance the C12 Group franchise system's long-term value to both members and franchisees. There is no additional renewal fee associated with these annual renewals. If there are material updates or changes, Franchisor may present Franchisee with a consent letter incorporating such terms, which shall act to renew this Agreement for another calendar year. Franchisor shall notify Franchisee of material changes to Royalty Fees and minimum membership fees (as the basis for calculating Royalty Fees) at least twelve (12) months before the expiration of the Term or any Renewal Term.
Franchisee shall notify Franchisor of Franchisee's intent to not renew the Term of this Agreement no later than ninety (90) days prior to the expiration of the Term, as may be renewed. If Franchisee elects to not renew the Term of this Agreement, Franchisee shall take all reasonable steps necessary to ensure the continuity of the Franchised Business or, if Franchisor decides to wind down the Franchised Business in Franchisor's sole discretion, the winding down of the Franchised Business, which processes may extend for a reasonable period of time beyond the expiration of the Term.
III. Franchisor's Duties
- New Chair Training.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreement begins upon execution and continues through December 31st of the calendar year following the year in which the agreement is executed. For instance, an agreement executed on May 31, 2024, would expire on December 31, 2025. The agreement is meant to be renewed each calendar year for additional one-year terms as long as both C12 Group and the franchisee agree to the renewal, the franchisee remains active in operating the franchised business, and the franchisee is in good standing under the agreement.
Being in good standing requires the franchisee to comply with the terms of the agreement and any updates or changes in C12 Group's business model and Operations Manual. C12 Group will notify the franchisee of material changes to Royalty Fees and minimum membership fees at least twelve months before the expiration of the term or any renewal term. There is no additional renewal fee associated with these annual renewals.
Continuing fees are based upon a percentage of monthly member billings ranging from 12% to 30%. These fees are recognized as earned. The franchisee will pay C12 Group Royalty Fees based on the membership roster and billings regardless of whether the franchisee actually collects the registration and/or membership fees from its members.