The C12 Group

The royalty rate of 23.75% is substantially higher than the typical range of 6-10% for business services franchises. Can you explain the basis for this rate and what specific services or ongoing support justify this level?

Why does the contract structure include an initial term of only 1 year with 999 renewal options, rather than the more typical 5-10 year initial term? How does this short initial commitment affect franchise stability and long-term planning?

The franchise fee of $25,000 is below typical for the category. What does this fee cover compared to competitors, and are there additional startup costs not captured in this figure?

Can you provide details on the single litigation case initiated against the franchisor? What was the nature of the case, outcome, and has it been resolved?

What specific renewal conditions must franchisees meet to renew at the end of their 1-year term, and how frequently are renewals denied?

With a non-renewal rate of 0%, are franchisees consistently choosing to renew their 1-year terms, or is the system too new to have meaningful renewal data?

How does the 1-year initial term affect franchisee investment decisions and business planning? Are there options to commit to longer initial terms?

The termination causes list includes 8 specific triggers. Can you detail what these termination causes are and provide examples of franchisees terminated for each category?

What is included in the $110 monthly technology fee, and are there any additional technology or system costs beyond this amount?

Given the 1-year renewal terms, how do franchisees plan for multi-year growth, and what protections exist against territory encroachment or franchisor policy changes during renewal?

The median gross sales of $471,919 versus average of $691,407 shows significant variance. What is the distribution of unit performance, and what factors drive the highest-performing locations?

Can you provide the Item 19 financial performance statement showing actual revenue, profit margins, and operating costs for franchisees?

How many franchisees have transferred their units in the past 3 years, and what are the primary reasons cited for these transfers?

With a 2-year/10-mile non-compete clause, can franchisees open competing businesses immediately after term expiration, or are there additional restrictions?

The transfer fee is $6,000. Are there any franchisor approval rights for incoming franchisees, and what are the criteria for approval?

What is the franchisee turnover or failure rate (units that closed, were terminated, or did not renew) compared to the system's growth rate?

Are there any disputes pending with franchisees regarding the royalty rate, renewal terms, or termination decisions?

How many franchisees in the system have been operating for less than 2 years, and what is their cumulative performance trend?

What support, training, and ongoing services are provided to justify the 23.75% royalty rate?

Can you clarify the renewal process: Are franchisees automatically renewed if they meet conditions, or does renewal require renegotiation of terms including royalty rates?