Does the text mention any financial thresholds related to C12 Group contracts?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ith accounting principles generally accepted in the United States (GAAP). The financial statements were presented on a consolidated basis and all significant intercompany accounts and transactions eliminated.
Revenue Recognition: A majority of the Company's revenues are derived from franchise fees. Franchise agreements generally require the franchisee to pay 1) an initial non-refundable territory fee of $25,000 per franchise unit, 2) a prepaid marketing deposit of $10,000, 3) a training and support fee of $10,000 to $12,500, which is refundable prior to the start of training, 4) continuing fees based upon a percentage of monthly member bill
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchise agreements involve several financial obligations. These include an initial non-refundable territory fee of $25,000 per franchise unit. Additionally, franchisees must pay a prepaid marketing deposit of $10,000. There is also a training and support fee ranging from $10,000 to $12,500, which is refundable before training begins.
Furthermore, C12 Group franchisees are required to pay continuing fees. These are calculated as a percentage of monthly member billings, with the percentage ranging from 12% to 30%. Franchisees also pay a new member registration fee, which ranged from $250 to $425 but increased to a range of $300 to $500 in July 2023. These fees are associated with the ongoing operation and support provided by C12 Group to its franchisees.
These financial thresholds and fees are typical in franchise agreements, as they cover the initial investment, ongoing support, and brand maintenance. Prospective franchisees should carefully consider these costs and how they fit into their business plan and financial projections. Understanding these financial obligations is crucial for assessing the potential profitability and sustainability of a C12 Group franchise.