What is the condition for C12 Group to require additional Baseline Target requirements?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
C12 reserves the right to require additional Baseline Target requirements after 36 months, including achieving greater than 100% of your original Baseline Target (see the example at the end of this Item 12), in order to ensure continued market growth and development. Your original Baseline Target only represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in your Territory. During the initial launch period, the franchisee will be responsible for demonstrating good faith development pursuits demonstrated by execution of the business plan crafted during New Chair Training or making at least eight new contacts per week until two CEO Forums are operating with more than six members each. C12 reserves the right to impose a cure process in subsequent months in the case of failure to demonstrate good faith development of a Territory.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, C12 Group reserves the right to require additional Baseline Target requirements after 36 months. This includes achieving greater than 100% of the original Baseline Target. The purpose of this is to ensure continued market growth and development within the franchisee's territory. The original Baseline Target only represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in the territory.
For a prospective C12 Group franchisee, this means that after the initial 36 months of operation, C12 Group may increase the performance expectations. This is tied to the franchisee's ability to penetrate the market and grow their membership base. The initial Baseline Target is calculated using factors such as the number of target companies, the evangelical rate in the region, and a 10% market penetration rate.
This condition incentivizes franchisees to not only meet but exceed their initial targets. It also ensures that the territory continues to develop and grow, benefiting both the franchisee and C12 Group. Franchisees should be prepared to adapt their business strategies and potentially increase their marketing efforts to meet these additional requirements. It is important to note that the Baseline Target is specific to each franchisee's territory and is established on a case-by-case basis.