What constitutes a material breach of the C12 Group franchise agreement related to conduct?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Breaches of this "above reproach" conduct, including moral turpitude, legal or illegal, are material grounds for immediate termination of thisagreement.
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Confidentiality and Conduct Upon Termination.
Franchisee shall hold all materials, practices, customer lists, contact lists, and any other proprietary information concerning Franchisor, the C12 brand, and C12 members confidential, and to return to Franchisor or destroy all such materials if this Agreement is terminated for any reason.
Upon the termination of this Agreement, the following shall apply: (a) all members in Franchisee's Territory must be notified of Franchisee's decision to leave C12 and they must be informed of their option to continue participating in CEO Forums and Key Player Forums led by a subsequent Area Chair to be appointed by Franchisor (Franchisor will formally present this option to the members, either collectively or individually); (b) members will be free to either remain C12 members or to make alternative CEO roundtable arrangements once they have been informed of their options; (c) Franchisee shall conduct itself in any such transition so that the best interests of the group members are served and that Kingdom unity and fellowship are preserved; and (d) Franchisee shall cease using all C12 materials, trade names and marks, and implying any association with C12.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a material breach of the franchise agreement related to conduct includes breaches of "above reproach" conduct, encompassing moral turpitude, whether legal or illegal. This standard of conduct is expected of C12 Group Area Chairs, who are considered leaders of leaders within the organization.
Specifically, C12 Group franchisees and their Area Chairs are expected to abstain from using all smoking products. While the FDD acknowledges that these expectations are not biblical mandates, they represent personal sacrifices and restraint that C12 Group expects of its franchisees. This expectation is rooted in service to C12 Group members and the preservation of Christian witness, referencing Romans 14:13; 1 Corinthians 8:9, 10:31-32; and 2 Corinthians 6:3.
Additionally, the FDD states that 'poaching' or purposely soliciting prospective C12 Group members who live and work in another franchisee's territory is considered a material breach of the agreement. This is seen as striking at the unity of the C12 Group franchise system and can lead to termination upon notice to the franchisee. However, if a member initiates a request to transfer their membership to another group in a different territory, the franchisee must allow the member to attend a meeting in the other group before a final decision is made.