Under what condition may a C12 Group member receive a discount on membership dues?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the right to negotiate "enterprise" relationships with national brands and that Franchisee agrees to honor such enterprise pricing offered by Franchisor. Examples of the enterprise pricing and benefits that Franchisor may offer are (1) a 10% discount on first-year dues (as determined by the franchisee list price for local market) for new Members from certain organizations and (2) corporately discounted new membership kits and other benefits sponsored by Franchisor (e.g., access to digital products, discounts to events).
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a new member from certain organizations may receive a discount on their first-year dues through enterprise pricing negotiated by the franchisor. Specifically, the FDD mentions a potential 10% discount on first-year dues, based on the franchisee's list price for the local market. This discount is part of enterprise relationships that C12 Group may establish with national brands.
This arrangement benefits prospective C12 Group franchisees by potentially attracting new members through discounted rates, thereby increasing membership and revenue. However, the franchisee must honor the enterprise pricing offered by C12 Group, which may impact their profit margin on those specific memberships. It is important for franchisees to understand the terms and conditions of these enterprise pricing agreements to accurately forecast revenue and manage member relationships.
It is also important to note that while franchisees have the liberty to set pricing according to local market conditions, C12 Group recommends regular price adjustments to remain competitive and keep pace with the franchisor's recommended dues schedule. This suggests that while the 10% discount is available under certain conditions, the franchisee should consider local market dynamics and the franchisor's recommendations when setting overall pricing strategies.