Is there an advertising or marketing fund applicable to C12 Group franchisees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
office to Area Chairs across the network (FA Section III). There is no advertising or marketing fund applicable to you with respect to this national advertising. There are no advertising or marketing cooperatives among franchisees. There is no advertising council that advises C12 with respect to its advertising. C12 utilizes primarily its in-house staff in developing advertisements but may from time to time retain advertising or marketing firms and/or graphic design artists to contribute to any particular campaign. There is no requirement that you expend any particular amount on advertising and/or marketing beyond the initial $10,
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, there is no advertising or marketing fund that franchisees are required to contribute to for national advertising. C12 Group retains sole discretion over its national advertising budget and activities. However, franchisees are required to spend an initial $10,000 on prepaid marketing.
C12 Group does maintain a Prepaid Marketing Fund, which is initially funded by the franchisee's $10,000 prepaid marketing fee. These funds are used for marketing and promotions within the franchisee's territory to promote new C12 Business Forums. Qualifying expenditures include C12 Direct Mail Campaigns, introductory events, lead procurement, local advertising, banners, event sponsorships, and e-marketing. Franchisees must submit requests with documentation for reimbursement of qualifying expenses, and C12 Group will administer payments or reimburse franchisees for out-of-pocket expenses. Franchisees have 18 months from the agreement date to use the full prepaid marketing fund, after which any unspent amounts are forfeited.
Additionally, C12 Group has a Marketing Co-op where they will pay a share of the cost of approved C12 marketing expenses, including expenses related to the Prepaid Marketing Fund and other eligible expenses, at a rate equal to the franchisee's monthly royalty fee percentage. This co-op is between the franchisee and C12 Group, not among franchisees. C12 Group also provides an annual credit of $500 for franchisees to purchase promotional materials from their online store. These marketing and advertising efforts are designed to help franchisees develop their territories and recruit new members.