How does the definition of 'Franchise Agreement' in Item 1 relate to the overall legal relationship between the franchisor and franchisee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
THE C12 GROUP, LLC® FRANCHISE AGREEMENT
This Franchise Agreement (the "Agreement") ismade on the Effective Date stated on the Summary Page (the "Effective Date") by and between The C12 Group, LLC (the "Franchisor"), a Texas Limited Liability Company, and the party or parties, whether one or more individuals or an entity, listed as Franchisee on the Summary Page (the "Franchisee").
RECITALS
WHEREAS, Franchisor and Franchisee enter into this Agreement before the Lord, for His purposes, with the expectation of this relationship modeling the attributes of a covenant which is made for mutual benefit and producing great eternal fruit. In doing so, Franchisor and Franchisee promise to fulfill this Agreement in harmony with the highest standards of Christian love and consideration as contained in the Bible and the teachings of Jesus Christ, pledging to honor one another and to work together for the glory of God. Further, Franchisor and Franchisee openly submit all interaction subsequent to the execution of this Agreement to the scrutiny of God and our brothers and sisters in Christ, promising to do all in our power to treat each other and conduct our business affairs in love and honor toward one another and the Body of Christ;
WHEREAS, Franchisor holds the rights to effective and valuable trade names, marks, materials, processes, methods, and procedures for operating, training, and serving others in the operation of a C12 Group practice aimed at helping Christian business owners, CEOs, presidents, general managers, and their staffs 'build great businesses for a greater purpose' (the "Franchised Business"). The Franchised Business includes conducting monthly CEO Forum meetings, One-on-One consultation sessions (Focus60), and selected specialty support offerings, seminars, and mentoring processes; and
WHEREAS, Franchisor offers to franchise these rights to Franchisee and provide other services to Franchisee as specifically established in this Agreement, and Franchisee desires to obtain the benefits, rights, and services offered by Franchisor as specifically established in this Agreement and to operate a C12 Franchised Business under the terms provided in this Agreement.
TERMS
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the Franchise Agreement outlines the complete legal relationship between C12 Group and its franchisees. The agreement is made on the effective date stated on the summary page between The C12 Group, LLC, the franchisor, and the franchisee. The document states that C12 Group offers to franchise certain rights to the franchisee and provide services as established in the agreement, while the franchisee desires to obtain the benefits, rights, and services offered by C12 Group and operate a franchised business under the terms provided in the agreement.
The Franchise Agreement grants the franchisee the right to operate a C12 Group business within a specific territory, contingent upon adhering to C12 Group's rules, regulations, methods, policies, and standards, including standards of Christian conduct. The franchisee is restricted from hosting C12 Group meetings outside of their territory but may provide services to members who live or work outside the territory but desire to participate in meetings within the franchisee's territory. The franchisee must reside within the territory unless C12 Group approves otherwise in writing and can only establish additional territories with written permission from C12 Group and by meeting their current requirements.
Several clauses within the Franchise Agreement govern the conduct of the franchisee. During the term of the agreement, the franchisee cannot own an interest or participate in any business viewed as competitive, injurious, or incompatible with C12 Group. For two years after termination, the franchisee is restricted from owning an interest in or being employed by a competitive business within the territory, within ten miles of the territory, within the territory of any other C12 franchise, or within ten miles of any other C12 franchise's territory, unless the franchisee pays C12 Group an exit fee. The franchisee also agrees not to solicit prospective C12 members who live and work in another franchisee's territory.
Prospective franchisees should carefully review the entire Franchise Agreement, including all addenda and exhibits, with legal counsel to fully understand their rights, obligations, and restrictions. The FDD itself contains a summary of certain material provisions, but the actual contract should be consulted for a complete understanding of the relationship between C12 Group and the franchisee.