factual

What were the total franchise fees for C12 Group in 2022?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

signing of the franchise agreement. Continuing fees are recognized as earned, with uncollectible amounts charged to operations.

6. Franchise Fees (Continued)

Franchise fees recorded for the years ended December 31 is as follows:

| | 2022 | 2021 | |-------------------------------------

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to the 2025 C12 Group Franchise Disclosure Document, the total franchise fees recorded for the year ending December 31, 2022, amounted to $5,362,125. This figure comprises two main components: initial fees (including those from Associate Chairs) totaling $473,488 and continuing fees of $4,888,637. In comparison, the total franchise fees for the previous year, 2021, were $4,232,334, indicating a notable increase in franchise fee revenue for C12 Group from 2021 to 2022.

For a prospective C12 Group franchisee, understanding the breakdown of these fees is crucial. Initial fees represent the upfront investment required to start the franchise, while continuing fees are ongoing payments typically based on a percentage of monthly member billings. The FDD states that these continuing fees range from 17.5% to 30% of monthly member billings. The initial fees also include fees paid by Associate Chairs.

The increase in both initial and continuing fees from 2021 to 2022 suggests potential growth and expansion within the C12 Group franchise system. This information can be valuable for potential franchisees in assessing the financial health and performance of the franchise. It's important to note that these figures reflect the total revenue generated from franchise fees across the entire C12 Group system and do not represent the earnings or expenses of an individual franchise location.

Prospective franchisees should carefully review the complete financial statements and related notes in the FDD to gain a comprehensive understanding of C12 Group's financial performance and the various factors that may influence franchise fee revenue. Additionally, they should inquire about the specific factors that contributed to the increase in franchise fees between 2021 and 2022 to better assess the potential for future growth and profitability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.