What is the duration of the post-termination non-competition period for C12 Group franchisees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
For two (2) years after the termination of this Agreement for any reason, Franchisee shall not directly or indirectly own an interest in or otherwise be employed by or engaged with a Competitive Business within the Territory, within ten (10) miles of the Territory, within the territory of any other C12 franchise, or within ten (10) miles of the territory of any other C12 franchise. For purposes of this Section, a "Competitive Business" is any business that offers peer mentorship and coaching to Christian business leaders. The post-termination non-competition obligations under this Section shall not apply if Franchisee pays Franchisor the Exit Fee described above.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee is subject to a post-termination non-competition covenant for two years after the termination of the Franchise Agreement, regardless of the reason for termination. During this two-year period, the franchisee is prohibited from owning an interest in, being employed by, or being engaged with a business that is competitive with C12 Group. A competitive business is defined as one that offers peer mentorship and coaching to Christian business leaders.
This non-compete restriction applies within the franchisee's territory, within ten miles of that territory, within the territory of any other C12 Group franchise, and within ten miles of any other C12 Group franchise territory. This means the geographic scope of the non-compete is potentially broad, extending beyond the franchisee's immediate area.
However, the post-termination non-competition obligations do not apply if the franchisee pays C12 Group the Exit Fee. The FDD does not specify the amount of the Exit Fee, so a prospective franchisee should clarify this amount with C12 Group. Non-compete clauses are common in franchising to protect the brand and business model; however, the specific terms can vary significantly between franchise systems. Franchisees should carefully consider the scope and duration of such clauses, along with the associated costs of opting out, before investing in a franchise.