What exclusive rights does a C12 Group franchisee have within their territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
fee of $2,500.
ITEM 12: TERRITORY
You will have a specific exclusive Territory, which is defined mutually by C12 and you and should be incorporated in your business plan development in conjunction with C12. This Territory will be defined based on geography, in terms of cities, zip codes, counties, states, or the radius around your home address. There is no minimum granted Territory size. No other franchisee shall have the right to establish, acquire, or operate a franchise within your exclusive Territory. You must reside within your Territory unless we approve otherwise. 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:
C12 Business Forum membership is open to all qualified business owners, CEOs, and general managers (and their staffs) who agree to comply with C12's behavioral protocols, maintain confidentiality, resolve conflict through biblical methods, and participate in the C12 'iron sharpening iron' peer group process which necessitates both listening and speaking in mutual 'business-as-ministry' efforts. All members must pledge to a non-solicitation protocol. Franchisee territory figures are based upon qualified/eligible individuals and, in good faith, all members of a Business Forum should meet or exceed minimum standards.
Once you have achieved two full Business Forums, you may also request an expansion of your Territory based on a proposed business plan. C12 must review and approve any such plan before it is pursued. Territory expansion will require a payment for each additional Unit of market potential (calculated as described in Item 5 & Item 7) according to C12's prevailing Franchise Fee (i.e., currently discounted for compliant franchisees seeking to expand at $20,000 per additional Unit). Any additional C12 Associate Chairs needed to service this expanded Territory must be mutually selected with the same high standards as Principal Chairs and trained according to C12's certification process. The cost for an Associate Chair for Training Weekis $10,000 and must be paid by the franchise and accompanied by a signed Associate Agreement at least two weeks prior to their Training Week. Franchise owners are required to complete the Associate Chair Checklist in coordination with the C12 Group development manager prior to Associate
Chair candidates attending New Chair Training to ensure alignment and success factors for new Area Chairs.
C12 grants exclusive territory to the C12 Principal Chairs (franchisees).
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees are granted a specific exclusive territory, defined through mutual agreement with C12 Group, and detailed in the franchisee's business plan. This territory is geographically determined, using cities, zip codes, counties, states, or a radius around the franchisee's home address. The FDD specifies that there is no minimum territory size. Within this area, no other franchisee can establish, acquire, or operate a franchise. Franchisees are generally required to reside within their territory, unless C12 Group approves otherwise.
Within their exclusive territory, C12 Group franchisees have the sole right to offer C12 Group services, programs, and materials by hosting CEO Forum meetings and Key Players Forum meetings. However, this exclusivity is subject to certain exceptions and restrictions. Membership in the C12 Business Forum is open to qualified business owners, CEOs, and general managers (and their staffs) who adhere to C12 Group's behavioral protocols, maintain confidentiality, resolve conflicts biblically, and participate in the peer group process. All members must also pledge to a non-solicitation protocol.
It is important to note that C12 Group can redefine the exclusive and non-exclusive territory definitions if a franchisee fails to meet minimum required levels of target market penetration, specifically 33% of the Baseline Target within 24 months and 50% within 36 months of becoming a franchisee. This is contingent on having at least one CEO Forum with at least ten CEO Members within two years of opening the business, unless 33% of the Baseline Target is less than ten CEOs. C12 Group also retains the right to terminate the Franchise Agreement for nonperformance after a 90-day cure period. Furthermore, C12 Group reserves the right to set additional Baseline Target requirements after 36 months to ensure continued market growth, potentially exceeding 100% of the original Baseline Target. The original Baseline Target represents 10% of the estimated number of evangelical CEOs and senior business managers in the franchisee's territory.