Why were two C12 Group franchisees excluded from the financial performance data?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
possible performance at a particular location or under particular circumstances.
There were sixty-seven (67) C12 Forum businesses open and operating as of December 31, 2024, all of which were operated by C12 franchisees. During the 2024 calendar year, two (2) franchisees opened for business during the year. These two (2) franchisees have been excluded from the data below. The data below is a historical financial performance representation, reflecting the Total Revenue earned by the remaining sixty-five (65) C12 franchisees that were open and operational from January 1, 2024 to December 31, 2024. There are no material financial or operational differences between these franchisees and the franchise offered under this disclosure document except that, as disclosed in Item 6, some early franchisees are "grandfathered in" at lower Royalty Fee percentages, but the different Royalty Fee percentages do not affect the Total Revenue earned by those franchisees. These figures were reported to us by our franchisees and have not been audited or independently verified.
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Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the financial performance representation includes data from 65 franchisees that were open and operating from January 1, 2024, to December 31, 2024. Two franchisees were excluded from this data because they opened for business during 2024.
This exclusion is a standard practice in franchise financial performance reporting. Including businesses that opened mid-year could skew the data and provide a misleading representation of potential earnings for a full year of operation. By focusing on franchisees with a full year of operation, C12 Group aims to provide a more accurate reflection of potential revenue.
The FDD specifies that the 65 franchisees included in the data reported a total revenue of $44,250,036. The document clarifies that there are no material financial or operational differences between the included and excluded franchisees, except for some early franchisees having lower royalty fee percentages, which does not affect total revenue. Prospective franchisees should note that these figures were reported by franchisees and have not been audited or independently verified.