Who determines whether a C12 Group franchisee has sufficiently demonstrated the ability to launch and successfully operate a C12 Franchised Business?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must achieve a minimum level of target market penetration to maintain exclusivity within Territory.
Franchisor defines Franchisee's "Baseline Target" using publicly available data, including, without limitation, the relevant Intelligent Direct, Inc (IDI) dba GbBIS business census in the Territory and research data provided by The Barna Group on the percentage of 'practicing Christians' or 'evangelical Christians' by region to establish the market potential in regard to the number of prospective member companies within the Territory.
Franchisee must achieve the minimum performance levels set forth in Section IV.8.a. to maintain exclusivity within the Territory.
If Franchisee fails to achieve such minimum performance levels, Franchisor may reduce the size of Franchisee's Territory, authorize another franchisee to operate a C12 Group franchise within Franchisee's Territory, or operate a C12 Group business within Franchisee's Territory.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group retains the authority to evaluate a franchisee's ability to successfully launch and operate a C12 Group franchise. This is particularly evident in the context of maintaining territory exclusivity.
Specifically, C12 Group defines a franchisee's "Baseline Target" using data from sources like Intelligent Direct, Inc (IDI) dba GbBIS and The Barna Group to assess market potential. The franchisee must then achieve minimum performance levels based on this target to retain exclusive rights within their territory.
If a C12 Group franchisee fails to meet these minimum performance standards, C12 Group has the right to reduce the franchisee's territory size, authorize another franchisee to operate within the original franchisee's territory, or even operate a C12 Group business within that territory themselves. Furthermore, if the franchisee is an entity, C12 Group must approve a replacement candidate for the role of C12 Area Chair.
These stipulations underscore C12 Group's active role in monitoring and assessing franchisee performance and its power to intervene if a franchisee does not meet the required standards for successful operation. Prospective franchisees should carefully consider these performance expectations and the potential consequences of failing to meet them.