What is the duration of the non-solicitation agreement for C12 Group franchisees after termination?
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, franchisees are subject to a non-solicitation agreement regarding members. Franchisees agree not to purposely solicit any prospective C12 member who lives and works in another C12 franchisee's territory. This restriction is in place to maintain the unity of the C12 franchise system.
If a C12 Group member desires to transfer their membership to a Business Forum in another franchisee's territory and initiates the request, the franchisee must allow the member to attend a meeting in the other group before making a final decision. In such cases, neither franchisee will receive compensation as a result of the member's transfer.
This policy is designed to serve the best interests of each member and is deemed the best policy for C12 Group franchisees. The FDD does not specify a duration for this non-solicitation agreement after the termination of the franchise agreement. Prospective franchisees should seek clarification from C12 Group regarding the duration of this non-solicitation agreement post-termination.