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Business Description

C12 is a Texas limited liability company whose articles of organization were filed with the Texas Secretary of State on August 29, 2016. Previously, C12 was a North Carolina limited liability company with articles filed with the North Carolina Secretary of State as of January 1, 2005. Our principal business address is 13403 George Rd., San Antonio, TX 78230. We do not have a parent entity. We do not have any affiliates.

Prior Experience

C12 was originally founded in Florida in 1992 as a sole proprietorship owned and operated by Lester (Buck) Jacobs. That Florida sole proprietorship, whose address was 656 Flamingo Dr., Apollo Beach, Florida 33572, is the first of C12's two predecessors. The Florida sole proprietorship was reorganized as a Florida limited liability company by the filing of its articles of organization with the Florida Secretary of State on March 20, 2001. The Florida limited liability company was merged into the North Carolina limited liability company on January 1, 2005, with the North Carolina limited liability company being the surviving entity of the merger. The North Carolina limited liability company was “redomesticated” into a Texas limited liability company on September 1, 2016 by way of a statutory conversion process.

Business Offered

C12 offers for sale and sells franchises. C12 does not operate any franchises itself and operates no business other than its obligations as franchisor owed to its franchisees, with the exception of C12 Atlanta LLC, a wholly-owned subsidiary operating a multi-unit franchise in the Greater Atlanta market. Shortly after C12's inception, it was determined that the franchise model was the best option for providing local Chairs equity and security while preserving the experiential brand imperative for the C12 mission. C12 and its franchisees work together for a mission, which is embedded in its own “business as ministry” construct. C12 is a missional business that employs franchise constructs.

Initial Fees

The Initial Franchise Fee includes a $10,000 Prepaid Marketing Fund, which may be partially refundable (see below) and a nonrefundable Training Reservation Fee of $10,000. The Training Reservation Fee must be paid at least 2 weeks prior to New Chair Training Week (“Training Week”). The Reservation Fee will be applied to the $40,000 Initial Franchise Fee upon Your execution of this agreement. The $30,000 balance of the Initial Franchise Fee is due upon Your execution of this agreement, which must occur by the completion of Your Training Week. This payment is non-refundable. If you do not meet Training Week requirements, you will be given a plan of remediation to complete, and you may be required to train a second time at our discretion, at an additional $2,500 fee. Should you still not meet the Training Week requirements or if the Franchise Agreement is terminated under any other circumstances prior to the Prepaid Marketing Fund being fully used, we may only return whatever portion of the Marketing Fund that has not already been used. No other portion of the initial fee is refundable.

Financing

C12 does not offer financing of any kind for its franchisees. C12 does not guaranty any lease, note, or other obligation of franchisees.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) the franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances