What activities are prohibited for a C12 Group franchisee during the term of the franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
rocess for communicating the termination of this Agreement with Franchisee's C12 members as outlined in Section IV.8.c. of this Agreement.
IX. Covenants
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- During the Term. Franchisee agrees to not own an interest or participate in any business viewed as competitive, injurious, or incompatible with Franchisor and the C12 Franchised Business. Franchisee agrees to engage in the C12 Franchised Business as Franchisee's primary vocation with no other vocational interests that may materially adversely impair Franchisee's ability to perform Franchisee's obligations hereunder.
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- Post-Termination Non-Competition. For two (2) years after the termination of this Agreement for any reason, Franchisee shall not directly or indirectly own an interest in or otherwise be employed by or engaged with a Competitive Business within the Territory, within ten (10) miles of the Territory, within the territory of any other C12 franchise, or within ten (10) miles of the territory of any other C12 franchise. For purposes of this Section, a "Competitive Business" is any business that offers peer mentorship and coaching to Christian business leaders. The post-termination non-competition obligations under this Section shall not apply if Franchisee pays Franchisor the Exit Fee described above.
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- Non-Solicitation of Members. Franchisee agrees to not purposely solicit (either directly or indirectly) any prospective C12 member who lives and works in the territory of another C12 franchisee. Such 'poaching' is deemed by C12 to be a material breach of this Agreement that strikes at the unity of the C12 franchise system and is grounds for termination upon notice to Franchisee.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, several restrictions are placed on franchisees during the term of their agreement. A C12 Group franchisee cannot own an interest or participate in any business viewed as competitive, injurious, or incompatible with C12 Group. The franchisee is expected to engage in the C12 Group franchised business as their primary vocation, without other vocational interests that could negatively impact their ability to fulfill their obligations under the franchise agreement.
Additionally, a C12 Group franchisee is restricted from hosting C12 Group meetings outside of their designated territory. While they can provide services to members who live or work outside their territory but wish to attend meetings within it, they cannot solicit current or prospective members who reside and work outside of their territory. If contacted by prospective members from outside their territory, the franchisee must inform them of other C12 Group options and provide the contact information for the appropriate franchisee.
These restrictions are typical in franchising to protect the brand, maintain consistency, and prevent conflicts of interest. The non-compete and territory restrictions ensure that the franchisee focuses on growing the C12 Group business and does not divert resources or attention to competing ventures. The rules regarding member solicitation are designed to maintain a fair and orderly system, preventing franchisees from poaching members from each other's territories and fostering a collaborative environment within the C12 Group franchise network.