What are the exceptions to a C12 Group franchisee's exclusive right to offer services in their territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You will have the exclusive right to offer C12 services, programs, and materials in your Territory via the hosting of CEO Forum meetings and Key Players Forum meetings in that geography, with the following exceptions and restrictions:
You also will have the non-exclusive right to serve those who live or work outside of your Territory but desire to participate in Business Forum meetings hosted in your Territory provided that you follow the same exceptions and restrictions above.
You may not solicit current or prospective C12 members who live and work outside your own Territory via direct (e.g., face-to-face, telephone, direct mail, telemarketing, email) or indirect means (e.g., via third parties, other channels of distribution such as the Internet or mutual friends). Any solicited or unsolicited inquiries from outside your Territory will necessitate that the candidate be given the opportunity to attend any Business Forum meeting in their home Territory (i.e., their 'local' CEO Forum) as well as your Business Forum before selecting the specific Business Forum they would like to join. If contacted by such a prospect, you must inform them that there is another C12 Business Forum option and provide contact information for the applicable franchisee. The qualified prospective member is free to elect, based on their own needs, priorities, and evaluation, which Business Forum they would like to join. The franchisee that is the Area Chair of that Business Forum must then decide if they are able to accommodate the candidate based on the Business Forum's existing composition and the logistics involved in the monthly one-on-one consultation sessions with the client.
We shall have the right to negotiate "enterprise" relationships with national brands and you shall agree to honor such enterprise pricing offered by us. Examples of the enterprise pricing and benefits that we may offer are (1) a 10% discount on first-year dues (as determined by the franchisee list price for local market) for new Members from certain organizations and (2) corporately discounted new membership kits and other benefits sponsored by us (e.g., access to digital products, discounts to events).
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee has the exclusive right to offer C12 Group services within their defined territory, but this right is subject to certain exceptions and restrictions. These exceptions primarily revolve around the ability of individuals outside the territory to participate in Business Forum meetings and C12 Group's right to negotiate enterprise relationships.
Specifically, individuals who live or work outside a franchisee's territory can still participate in Business Forum meetings hosted within that territory, provided the franchisee adheres to the same exceptions and restrictions that apply to members within the territory. Additionally, franchisees are not allowed to directly solicit current or prospective members who live and work outside their territory through direct or indirect means. If a franchisee receives inquiries from outside their territory, they must inform the prospect of the option to attend a Business Forum in their home territory and provide contact information for the relevant franchisee. The prospective member then has the freedom to choose which Business Forum to join.
C12 Group also retains the right to negotiate "enterprise" relationships with national brands, and franchisees are obligated to honor the pricing offered through these relationships. Examples of such enterprise pricing include a 10% discount on first-year dues for new members from certain organizations and corporately discounted new membership kits. These exceptions ensure that while franchisees have an exclusive territory, C12 Group can still manage national relationships and allow for flexibility in membership based on individual needs and preferences.