Under what condition is the training and support fee refundable for a C12 Group franchise?
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, whi
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the training and support fee, which ranges from $10,000 to $12,500, is refundable if the refund is requested prior to the start of training. This applies to both Principal Chairs and Associate Chairs, with Associate Chairs potentially paying a lower training and support fee of $7,500.
For a prospective C12 Group franchisee, this means that if they decide to withdraw from the franchise agreement before the training commences, they are entitled to a refund of the training and support fee. This provides a limited safety net for new franchisees who may have second thoughts before fully engaging with the C12 Group system.
It's important to note that the initial territory fee of $25,000 is non-refundable. Therefore, a franchisee who cancels before training would still forfeit this initial fee. This is a common practice in franchising, where the initial fee compensates the franchisor for the costs associated with granting the franchise and setting up the franchisee. The prepaid marketing deposit of $10,000 may also be at risk, depending on whether any of it has been spent.