What approval is C12 Group ultimately responsible for regarding Principal Chairs in a C12 Group franchise with non-operating ownership?

According to the 2025 C12 Group Franchise Disclosure Document, C12 Group retains ultimate approval authority over the selection, training, and installment of any Principal Chair, even when the franchise has a non-operating ownership entity. This means that while a non-operating owner can designate someone to manage the franchise, that person must still meet C12 Group's standards and receive their approval to become a Principal Chair.

This requirement ensures that all Principal Chairs, regardless of the ownership structure of the franchise, are qualified and aligned with C12 Group's standards for moral and spiritual integrity. It also helps C12 Group maintain consistency and quality across its franchise network. The non-operating ownership entity must also comply with the moral and spiritual integrity standards associated with a Principal Chair within the community and not engage in any competing, conflict of interest, or predatory business interests.

For a prospective franchisee, this means that even if they plan to have silent investors or a non-operating ownership structure, they cannot bypass C12 Group's approval process for the Principal Chair. This requirement protects the C12 Group brand and ensures that all Principal Chairs are properly vetted and trained. This also includes the stipulation that C12 Group must approve and train all subsequent Area Chairs (whether designated as Principal Chairs by responsibility or not).