What is the 'Baseline Target' for a C12 Group Franchisee based on?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
collects the registration and/or membership fees from its members.
8. Performance, Conduct, and Confidentiality
a. Baseline Target Performance. Franchisee shall pursue the business plan developed during Franchisee's New Chair Training and strive to achieve a ten percent (10%) market penetration of the businesses within the Territory that qualify for C12 membership (the "Baseline Target"). Franchise's Baseline Target is set forth in Section V.1. of this Agreement. Within twenty-four (24) months of opening for business, Franchisee must achieve the greater of (i) thirty-three percent (33%) of the Baseline Target or (ii) at least one (1) CEO Forum with at least ten (10) CEO Members. Franchisee must achieve fifty percent (50%) of the Baseline Target and have at least ten (10) CEO Members within three (3) years of opening for business. If Franchisee fails to achieve either of these performance levels, Franchisee shall have ninety (90) days in which to meet such levels or, if permitted by Franchisor, ninety (90) days in which to make substantial progress in good faith, as determined in Franchisor's sole discretion, toward such levels. If Franchisee fails to achieve these performance levels within ninety (90) days of receiving notice from Franchisor, Franchisor may, in its sole discretion, redefine the Territory or terminate the Franchise
Agreement.
- b. Biblical Conduct. Franchisee acknowledges that being a C12 franchisee and Area Chair represents a unique role and Kingdom responsibility and agrees that Franchisee will work in a manner consistent with biblical principles in order to contribute to the unity, peace, mutual trust, hope, love, and respect of those engaged in C12 at all levels.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee's "Baseline Target" is based on a business plan developed during the New Chair Training. The franchisee should strive to achieve a ten percent (10%) market penetration of businesses within their territory that qualify for C12 membership.
C12 Group defines the Baseline Target using publicly available data. This includes the Intelligent Direct, Inc (IDI) dba GbBIS business census in the territory. They also use research data from The Barna Group on the percentage of 'practicing Christians' or 'evangelical Christians' by region. This data helps establish the market potential in terms of prospective member companies within the territory.
Within 24 months of opening, a C12 Group franchisee must achieve the greater of (i) thirty-three percent (33%) of the Baseline Target or (ii) at least one (1) CEO Forum with at least ten (10) CEO Members. Within three years of opening, the franchisee must achieve fifty percent (50%) of the Baseline Target and have at least ten (10) CEO Members. Failure to meet these performance levels may result in the franchisor redefining the territory or terminating the franchise agreement.