What is the consequence for breaches of 'above reproach' conduct by a C12 Group franchisee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further agrees that, as leaders of leaders, C12 Area Chairs are required to abide by a covenant of "above reproach" conduct.
Behaviors that could be questionable or cause members/customers to stumble are to be avoided by Franchisee with a high degree of wisdom and prudence.
Specifically, Franchisee and its Area Chairs shall abstain from the use of all smoking products.
Franchisor and Franchisee agree that these are not biblical mandates or evil but rather represent areas of personal sacrifice and restraint that Franchisor expects of all franchisees out of service to C12 members and preservation of Christian witness (see Romans 14:13; 1 Corinthians 8:9, 10:31-32; 2 Corinthians 6:3).
Breaches of this "above reproach" conduct, including moral turpitude, legal or illegal, are material grounds for immediate termination of thisagreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group Area Chairs are required to abide by a covenant of "above reproach" conduct. This means that franchisees should avoid behaviors that could be questionable or cause members/customers to stumble, exercising wisdom and prudence in their actions. Specifically, franchisees and their Area Chairs must abstain from using all smoking products. While C12 Group acknowledges that these aren't biblical mandates, they represent areas of personal sacrifice and restraint expected of all franchisees.
Breaches of this "above reproach" conduct, including moral turpitude, whether legal or illegal, are considered material grounds for immediate termination of the franchise agreement. This means that if a C12 Group franchisee violates this covenant, C12 Group has the right to terminate the agreement immediately.
This policy underscores the importance C12 Group places on maintaining a high standard of ethical and moral conduct among its franchisees, given their leadership roles within the Christian business community. Prospective franchisees should carefully consider these requirements and ensure they are willing and able to adhere to these standards to avoid potential termination of their franchise agreement.