What is the condition for C12 Group to terminate a Franchise Agreement for nonperformance?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
C12 also reserves the unilateral right to terminate a Franchise Agreement for nonperformance after a 90-day right to cure on the part of the franchisee.
We may terminate the Franchise Agreement or revise your territorial size and exclusivity in our sole discretion if, by the conclusion of the first ninety (90) days after executing the Franchise Agreement, you have not started building a CEO Forum as is demonstrated by your diligence in performing the following duties: (i) making eight (8) Contacts per week on average; (ii) attending the mandatory Semi-Annual Chair Training sessions that occur during that period as well as the Sales Training Series; (iii) launching a direct marketing campaign; (iv) having a specific plan for the first C12 introductory event and/or initial CEO Forum in the Territory, and (v) reporting to us and making progress regarding the specific Business Plan Goals and Action Plan Goals that you established with us during Training Week.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, C12 Group has the unilateral right to terminate a Franchise Agreement for nonperformance. However, C12 Group must provide the franchisee a 90-day right to cure the nonperformance before terminating the agreement.
Additionally, C12 Group may terminate the Franchise Agreement if the franchisee does not meet the minimum required levels of target market penetration. This is defined as 33% of the Baseline Target within 24 months and 50% within 36 months of becoming a franchisee, with at least one CEO Forum with at least ten CEO Members within two years of opening the business, should 33% of Baseline Target be less than ten CEOs. If these penetration levels are not met, C12 Group has the right to redefine the exclusive and non-exclusive Territory definitions, but will endeavor to jointly discuss and plan such changes in advance with the franchisee.
C12 Group also has the right to terminate the Franchise Agreement if, within the first 90 days after executing the agreement, the franchisee has not started building a CEO Forum. This is demonstrated by the franchisee's diligence in performing specific duties, including making an average of eight contacts per week, attending mandatory training sessions, launching a direct marketing campaign, having a specific plan for the first C12 introductory event and/or initial CEO Forum in the Territory, and reporting progress on Business Plan Goals and Action Plan Goals established during Training Week.