What are the consequences for a C12 Group franchisee who solicits members outside of their territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not solicit current or prospective C12 members who live and work outside your own Territory via direct (e.g., face-to-face, telephone, direct mail, telemarketing, email) or indirect means (e.g., via third parties, other channels of distribution such as the Internet or mutual friends). Any solicited or unsolicited inquiries from outside your Territory will necessitate that the candidate be given the opportunity to attend any Business Forum meeting in their home Territory (i.e., their 'local' CEO Forum) as well as your Business Forum before selecting the specific Business Forum they would like to join. If contacted by such a prospect, you must inform them that there is another C12 Business Forum option and provide contact information for the applicable franchisee. The qualified prospective member is free to elect, based on their own needs, priorities, and evaluation, which Business Forum they would like to join. The franchisee that is the Area Chair of that Business Forum must then decide if they are able to accommodate the candidate based on the Business Forum's existing composition and the logistics involved in the monthly one-on-one consultation sessions with the client.
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. (See Franchise Agreement, Section VIII.6) Except as set forth above, the definition of your Territory may not be changed without our and your written consent. You are permitted, at your expense and discretion, to relocate your business, as long as the relocation occurs within the geographic territory boundaries as clearly defined in
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees are restricted from actively soliciting current or prospective members outside of their designated territory through direct or indirect methods. Direct methods include face-to-face meetings, telephone calls, direct mail, telemarketing, and email. Indirect methods include using third parties or other channels of distribution, such as the Internet or mutual friends.
If a C12 Group franchisee receives inquiries from potential members outside their territory, they must inform the prospect of their local C12 Business Forum options and provide contact information for the relevant franchisee. The prospective member then has the option to attend meetings in both their home territory and the soliciting franchisee's territory before deciding which forum to join. The Area Chair of the prospect's local Business Forum has the final say on whether they can accommodate the candidate, considering the forum's existing composition and logistical factors related to monthly one-on-one consultation sessions.
Furthermore, C12 Group retains the right to terminate the Franchise Agreement or modify the franchisee's territorial size and exclusivity if the franchisee fails to meet specific milestones within the first 90 days of the agreement. These milestones include making an average of eight contacts per week, attending mandatory training sessions, launching a direct marketing campaign, having a plan for the first C12 introductory event, and reporting progress on business plan goals. These measures ensure franchisees actively develop their designated territory and adhere to C12 Group's standards.