What is the definition of 'Baseline Target' for a C12 Group franchisee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
5,590 Target Companies x 15% Evangelical Rate x 10% Market Penetration / 24 CEOs per Unit = 3.49
"Baseline Target" is defined as the specific number of C12 members for a given Territory that equates to the level of market penetration that is determined by the calculations set forth below. Each franchisee's Companies in the Territory, the applicable Evangelical Rate for the region, and a 10% market penetration rate. This rate is based on a defined geographical area from business census data provided by IDI. It is based on businesses with 10+ full-time employees and $1 million+ in revenue. The 10% penetration rate represents a reasonable and customary formula for establishing franchise territories.
For example, the Baseline Target for Indianapolis is as follows:
5,590 Target Companies x 15% Evangelical Rate x 10% Market Penetration Rate = 84 C12 CEO Members
Chair candidates attending New Chair Training to ensure alignment and success factors for new Area Chairs.
C12 grants exclusive territory to the C12 Principal Chairs (franchisees). If you fail to meet minimum required levels of target market penetration (i.e., 33% of Baseline Target within 24 months and 50% within 36 months of becoming a franchisee with at least one (1) CEO Forum with at least ten (10) CEO Members within two years of opening the business should 33% of Baseline Target be less than ten (10) CEOs), C12 has the unilateral right to redefine exclusive and non-exclusive Territory definitions but will endeavor to jointly discuss and plan such changes in advance. Each franchisee's Baseline Target is established on a case-by-case basis. C12 also reserves the unilateral right to terminate a Franchise Agreement for nonperformance after a 90-day right to cure on the part of the franchisee. C12 reserves the right to require additional Baseline Target requirements after 36 months, including achieving greater than 100% of your original Baseline Target (see the example at the end of this Item 12), in order to ensure continued market growth and development. Your original Baseline Target only represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in your Territory. During the initial launch period, the franchisee will be responsible for demonstrating good faith development pursuits demonstrated by execution of the business plan crafted during New Chair Training or making at least eight new contacts per week until two CEO Forums are operating with more than six members each. C12 reserves the right to impose a cure process in subsequent months in the case of failure to demonstrate good faith development of a Territory.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the 'Baseline Target' is defined as the specific number of C12 Group members a franchisee needs to acquire within their territory to achieve a certain level of market penetration. This target is determined by calculations considering the number of companies in the territory, the applicable Evangelical Rate for the region, and a 10% market penetration rate. The data is based on a defined geographical area from business census data provided by IDI, focusing on businesses with 10 or more full-time employees and $1 million or more in revenue.
For instance, the FDD provides an example for Indianapolis, where the Baseline Target is calculated as follows: 5,590 Target Companies x 15% Evangelical Rate x 10% Market Penetration Rate = 84 C12 CEO Members. This means that for Indianapolis, the Baseline Target is 84 CEO members. Each franchisee's Baseline Target is established on a case-by-case basis.
C12 Group requires franchisees to meet minimum levels of target market penetration. Specifically, a franchisee must achieve 33% of their Baseline Target within 24 months and 50% within 36 months of becoming a franchisee. Additionally, they must have at least one CEO Forum with at least ten CEO Members within two years of opening the business, unless 33% of the Baseline Target is less than ten CEOs. Failure to meet these targets can result in C12 Group redefining the exclusive and non-exclusive territory definitions or even terminating the Franchise Agreement after a 90-day cure period. C12 Group also reserves the right to require additional Baseline Target requirements after 36 months, including achieving greater than 100% of the original Baseline Target, to ensure continued market growth and development. The original Baseline Target represents only 10% of the estimated number of evangelical CEOs and senior business managers in the franchisee's territory.
During the initial launch period, franchisees are expected to demonstrate good faith development efforts by executing the business plan created during New Chair Training or making at least eight new contacts per week until two CEO Forums are operating with more than six members each. C12 Group reserves the right to impose a cure process if a franchisee fails to demonstrate good faith development of their territory. This system of baseline targets and performance requirements is designed to ensure that franchisees are actively working to penetrate their market and grow the C12 Group network.