What exclusive right does a C12 Group franchisee have within their territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
odify the approved products or services in Franchisor's sole discretion from time to time, and Franchisee must comply with such modifications.
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- Territorial Restrictions. Franchisee will have the exclusive right to establish a C12 Group business within the Territory and to market C12 Group services, programs, and materials within the Territory.
Franchisee shall not host C12 Group meetings outside of the Territory. Franchisee may provide C12 Group services to members who live or work outside of the Territory but desire to participate in C12 Group meetings within the Territory. Similarly, individuals living within the Territory may engage with C12 Group businesses operated by other franchisees or Franchisor and its affiliates. Franchisee must reside within the Territory unless Franchisor approves otherwise in writing. Franchisee may only establish additional territories with Franchisor's written permission and by meeting Franchisor's then-current requirements for operating a C12 Group business within multiple territories. Franchisee shall not solicit current or prospective members who live and work outside of the Territory. If Franchisee is contacted by any prospective members who live and work outside of the Territory, Franchisee must inform such prospective members that there is another C12 Group business forum option (if applicable) and provide such prospective members with contact information of the C12 franchisee whose Territory the prospective members live and work within.
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- C12 Group Membership. C12 membership is limited to Christian business Owners, CEOs, Presidents, and General Managers (and their team members) who give assent to Franchisor's Doctrine Statement or seek to understand these values and principles as they seriously consider the claims of Christ. Each member agrees to group confidentiality, Christian conflict resolution, and being a part of an 'iron sharpening iron' peer group process that requires both listening and speaking in mutual ministry efforts.
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- Minimum Performance Standards. Franchisee must achieve a minimum level of target market penetration to maintain exclusivity within Territory.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee has the exclusive right to establish a C12 Group business and market its services, programs, and materials within their designated territory. However, this exclusivity is subject to certain conditions and limitations.
The franchisee is restricted from hosting C12 Group meetings outside of their assigned territory. They can, however, provide services to members who live or work outside the territory but wish to attend meetings within it. Conversely, individuals within the franchisee's territory may engage with C12 Group businesses operated by other franchisees or the franchisor. The franchisee must also reside within the territory unless the C12 Group provides written approval otherwise.
To maintain this exclusivity, the C12 Group franchisee must achieve a minimum level of target market penetration. Failure to meet these minimum performance levels could result in the franchisor reducing the territory size, authorizing another franchisee to operate within the original territory, or operating a C12 Group business within the territory themselves. This performance is evaluated using data such as business census information and research on the percentage of Christians in the region to determine market potential.