Is there a requirement to apply to C12 Group to receive marketing subsidies?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assisting you with on-going local C12 events, seminars, and awards banquets in your local Territory by providing formats, selected support materials, and perhaps a speaker (when mutually scheduled in advance) (FA Section III). When events are specifically planned with the primary purpose of expanding local C12 membership, C12 may subsidize the marketing cost (e.g., pre-approved turnkey C12 Direct Mail Campaign) at the rate of your Monthly royalty fee % against total billings, subject to your application and C12's approval.
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- The C12 marketing expenses related to marketing activities and items are those specifically approved and administered by C12, which include C12 Direct Mail Campaigns and C12 endorsed lead lists (e.g., InfoUSA). Upon your submission of a C12 Marketing Co-op Request Form with applicable documentation, C12 will review, approve, and make payment accordingly.
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Performing marketing and promotions in your Territory by spending the Prepaid Marketing Fund on initiatives that directly promote the formation of new C12 Business Forums in your Territory.
Prepaid Marketing expenditures that qualify for payment include C12 Direct Mail
Campaigns related to C12 introductory events or meetings, procurement of qualifying lists of leads, local advertising, banners and other displays for exhibiting, event sponsorships, and emarketing. The use of the Prepaid Marketing Fund and percentage used for different approved expenditures vary for each individual practice and Chair. You are to follow the C12 Brand Standards Guide. Items which do not qualify include software related to contact or customer relationship management, regular subscriptions (e.g., Constant Contact), foodand beverage, catering, organizational membership dues, space rental for events or meetings, audio-visual equipment, and general supplies. Upon your submission of written requests with applicable documentation, C12 will reimburse you for your out-of-pocket expenditures on qualifying Prepaid Marketing Expenditures up to the limit of the balance available in the Prepaid Marketing Fund. C12 will make payments directly to vendors in the cases where C12 administers the marketing initiative on your behalf.
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, franchisees must apply to receive marketing subsidies for certain local events. Specifically, if C12 Group franchisees plan events to expand local C12 Group membership, C12 Group may subsidize the marketing costs, such as pre-approved turnkey C12 Direct Mail Campaigns. The subsidy is based on the franchisee's monthly royalty fee percentage against total billings. However, this subsidy is subject to the franchisee's application and C12 Group's approval.
Additionally, C12 Group maintains a C12 Marketing Co-op where they will pay a share of the cost of C12 Group marketing expenses, including expenses related to the Prepaid Marketing Fund and other eligible expenses, at a rate equal to the franchisee's applicable monthly royalty fee percentage. These marketing activities and items must be specifically approved and administered by C12 Group, such as C12 Direct Mail Campaigns and C12 endorsed lead lists. To receive these co-op funds, franchisees must submit a C12 Marketing Co-op Request Form with applicable documentation for C12 Group's review, approval, and payment.
Furthermore, C12 Group offers a Prepaid Marketing Fund, which franchisees must use within 18 months of signing the agreement. To utilize these funds, franchisees must submit written requests with applicable documentation for reimbursement of out-of-pocket expenditures on qualifying Prepaid Marketing Expenditures, up to the limit of the balance available in the fund. C12 Group will also make direct payments to vendors if they administer the marketing initiative on the franchisee's behalf. These marketing subsidies and funds are designed to support franchisees in promoting and expanding their local C12 Group memberships, subject to C12 Group's approval and adherence to their guidelines.