What is the consequence of breaching the 'above reproach' conduct expected of C12 Group Area Chairs?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to exercise best efforts to ensure that C12 members abide by Franchisor's code of conduct and support sound biblical doctrine.
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 FDD, C12 Group Area Chairs are expected to abide by a covenant of "above reproach" conduct, given their role as leaders of leaders. This standard requires Area Chairs to avoid behaviors that could be questionable or cause members/customers to stumble, exercising wisdom and prudence in their actions. Specifically, Area Chairs must abstain from the use of all smoking products, representing a personal sacrifice and restraint expected by C12 Group to preserve Christian witness and serve its members.
Breaching this standard of conduct can lead to serious repercussions. Any breaches of the "above reproach" conduct, including acts of moral turpitude, whether legal or illegal, are considered material grounds for immediate termination of the franchise agreement. This means that C12 Group can terminate the agreement immediately if an Area Chair fails to uphold the expected standards of behavior.
Upon termination, the franchisee must maintain confidentiality regarding all materials, practices, customer lists, contact lists, and proprietary information related to C12 Group, the brand, and its members. The franchisee is also required to return or destroy all such materials. Furthermore, all members in the franchisee's territory must be notified of the franchisee's departure, and they must be informed of their option to continue participating in CEO Forums and Key Player Forums under a new Area Chair appointed by C12 Group. The departing franchisee must conduct themselves in a way that serves the best interests of the group members and preserves Kingdom unity and fellowship, ceasing all use of C12 Group materials, trade names, and marks, and refraining from implying any association with C12 Group.