What are the conditions under which a C12 Group franchisee can request an expansion of their Territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
members of a Business Forum should meet or exceed minimum standards.
Once you have achieved two full Business Forums, you may also request an expansion of your Territory based on a proposed business plan. C12 must review and approve any such plan before it is pursued. Territory expansion will require a payment for each additional Unit of market potential (calculated as described in Item 5 & Item 7) according to C12's prevailing Franchise Fee (i.e., currently discounted for compliant franchisees seeking to expand at $20,000 per additional Unit). Any additional C12 Associate Chairs needed to service this expanded Territory must be mutually selected with the same high standards as Principal Chairs and trained according to C12's certification process. The cost for an Associate Chair for Training Weekis $10,000 and must be paid by the franchise and accompanied by a signed Associate Agreement at least two weeks prior to their Training Week. Franchise owners are required to complete the Associate Chair Checklist in
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee may request an expansion of their territory once they have achieved two full Business Forums. This request must be based on a proposed business plan, which C12 Group must review and approve before the franchisee can proceed with the expansion. Territory expansion requires a payment for each additional Unit of market potential, calculated as described in Item 5 & Item 7, according to C12 Group's prevailing Franchise Fee, which is currently discounted for compliant franchisees seeking to expand at $20,000 per additional Unit.
Expanding the territory may also necessitate additional C12 Associate Chairs to service the expanded area. These Associate Chairs must be mutually selected with the same high standards as Principal Chairs and trained according to C12 Group's certification process. The cost for an Associate Chair for Training Week is $10,000, which the franchise must pay. A signed Associate Agreement must accompany this payment at least two weeks prior to their Training Week. The franchise owners are required to complete the Associate Chair Checklist in coordination with the C12 Group development manager prior to the Associate's training.
It is important to note that franchisees do not automatically receive the right to additional Territory Units in their area, and there are no options, rights of first refusal, or similar rights under the Franchise Agreement. This means that even if a franchisee meets the initial criteria for expansion, C12 Group retains the right to deny the request based on their review of the proposed business plan and other factors. This contrasts with some franchise systems that offer franchisees a right of first refusal on adjacent territories, providing a more predictable path for growth.