What constitutes 'poaching' of prospective members by C12 Group franchisees?
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' is defined as a C12 Group franchisee purposely soliciting, either directly or indirectly, any prospective C12 member who lives and works in another C12 Group franchisee's territory. C12 Group considers such poaching a material breach of the franchise agreement, which may result in termination of the agreement upon notice to the franchisee.
However, the FDD outlines a specific exception to this rule. If a C12 Group member in one franchisee's territory desires to transfer their membership to a Business Forum in another franchisee's territory and initiates the request, the original franchisee must allow the member to attend a full meeting in the other group, assuming there is room for potential membership, before a final decision is made. This policy is designed to serve the best interests of the member and is deemed the best policy for C12 Group franchisees.
In the event of such a member transfer, the FDD states that neither franchisee will receive compensation as a result of the member's decision to transfer. This policy aims to maintain unity within the C12 Group franchise system and prioritize the needs of individual members while discouraging franchisees from actively recruiting members from other territories.