What business interests are non-operating ownership entities prohibited from engaging in within a C12 Group franchise?

According to the 2025 C12 Group FDD, a non-operating ownership entity associated with a C12 Group franchise must adhere to specific ethical and operational standards. These entities are prohibited from engaging in any business interests that are considered competing, create a conflict of interest, or are predatory in nature. This restriction ensures that the ownership entity's activities do not undermine the integrity and performance of the C12 Group franchise.

Furthermore, while a non-operating entity can designate a Principal Chair to manage the franchise, C12 Group retains the right to approve the selection, training, and installment of any Principal Chair. This oversight ensures that the individuals leading the franchise align with C12 Group's standards and are adequately prepared to uphold the brand's values and operational requirements. All agreements and assignments related to the Principal Chair must receive written approval from C12 Group.

This policy is in place to support the capitalization of new franchise launches, as well as to facilitate succession and liquidation strategies for franchisees upon their exit. By maintaining control over the selection and approval of Principal Chairs, C12 Group aims to protect the interests of the franchise system and ensure consistent quality across all locations. This also helps to maintain the moral and spiritual integrity expected within the C12 Group community.