Are there any fees associated with the contracts mentioned in the text for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
s 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 billings ranging from 12% to 30%, and 5) a new member registration fee ranging from $300-500. Franchise agreements are renewed annually with no additional charges.
When a franchise is sold, the Company agrees to provide certain services to the franchisee, including assisting with site selection, training, reference and promotional materials and assistance with local C12 events.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, several fees are associated with the franchise agreement. These include an initial non-refundable territory fee, a prepaid marketing deposit, a training and support fee, continuing fees, and a new member registration fee. Franchise agreements are renewed annually with no additional charges.
Specifically, the initial non-refundable territory fee is $25,000 per franchise unit. There's also a prepaid marketing deposit of $10,000. The training and support fee ranges from $10,000 to $12,500, but it is refundable prior to the start of training. Continuing fees are based on a percentage of monthly member billings, ranging from 12% to 30%. Finally, there is a new member registration fee ranging from $300 to $500.
Additionally, C12 Group franchisees are required to pay a monthly fee to cover the cost of attending the Semi-Annual Chair Training, which is currently $110 per month. This fee also applies to each Associate Chair engaged by the franchisee. Franchisees are responsible for their own travel and lodging costs associated with the training. The franchisor may increase the monthly fee for Semi-Annual Chair Training at its sole discretion.
Prospective franchisees should carefully consider these fees and their potential impact on their overall investment and profitability. Understanding the terms and conditions associated with each fee is crucial for making an informed decision about investing in a C12 Group franchise.