What is the consequence for a C12 Group franchisee who engages in 'poaching'?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to not purposely solicit (either directly or indirectly) any prospective C12 member who lives and works in the territory of another C12 franchisee. Such 'poaching' is deemed by C12 to be a material breach of this Agreement that strikes at the unity of the C12 franchise system and is grounds for termination upon notice to Franchisee. If one of Franchisee's C12 members desires, for any reason, to consider becoming a member of a Business Forum in another C12 franchisee's territory and personally initiates a request to transfer their membership to another group, Franchisee shall enable the member to attend a full meeting in the other group (presuming room exists for their potential membership) before they reach a final decision. This C12 policy is aimed at serving the best
interests of each member and is ultimately deemed as the best policy for C12 franchisees. In such a scenario, Franchisee agrees that there will be no compensation to either Franchisee or the other C12 franchisee as a result of a member choosing to make such a transfer.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, 'poaching'—defined as a franchisee purposely soliciting prospective C12 members who live and work in another franchisee's territory—is considered a material breach of the franchise agreement. The consequence for a C12 Group franchisee who engages in poaching is termination of the franchise agreement, upon notice to the franchisee.
This policy is in place to maintain the unity of the C12 Group franchise system and protect each franchisee's exclusive territorial rights. However, the FDD outlines an exception: if a C12 Group member independently seeks to transfer their membership to a forum in another franchisee's territory, the original franchisee must allow the member to attend a meeting in the other group before making a final decision, assuming there is room for them.
In the event of such a member-initiated transfer, neither franchisee receives compensation. This policy emphasizes serving the best interests of the members and maintaining positive relationships within the C12 Group network. Prospective franchisees should understand that adhering to these non-solicitation rules is critical to maintaining their franchise agreement and the overall health of the C12 Group system.