What constitutes 'poaching' of members in the C12 Group franchise agreement?
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 C12 Group's 2025 Franchise Disclosure Document, 'poaching' is defined as a franchisee purposely soliciting, either directly or indirectly, any prospective C12 member who lives and works in another C12 franchisee's territory. C12 Group considers such actions a material breach of the franchise agreement, potentially leading to termination of the agreement with notice to the franchisee.
However, the agreement makes an exception for situations where a C12 Group member independently seeks to transfer their membership to a Business Forum in another franchisee's territory. In such cases, the franchisee must allow the member to attend a full meeting in the other group, assuming there is space for them, before they make a final decision.
In the event of such a member-initiated transfer, neither the original franchisee nor the receiving franchisee will receive any compensation. This policy is designed to prioritize the best interests of the individual member and is considered the optimal approach for all C12 Group franchisees. This policy aims to maintain the integrity and unity of the C12 Group franchise system.