How is the Exit Fee calculated for a C12 Group franchisee?
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)
I am unable to provide information on how the exit fee is calculated for a C12 Group franchisee, according to the 2025 Franchise Disclosure Document. While the document mentions an Exit Fee in the context of post-termination non-competition, it does not specify how this fee is calculated. The FDD states that the post-termination non-competition obligations do not apply if the franchisee pays the Exit Fee.
Without further details, prospective franchisees should inquire with C12 Group about the specific formula or criteria used to determine the Exit Fee. Understanding the calculation method is crucial for evaluating the financial implications of potentially exiting the franchise and competing in the same market afterward.
Specifically, a potential franchisee should ask C12 Group about what factors influence the Exit Fee, such as the franchisee's tenure, revenue, or market size. This information will help in making an informed decision about investing in a C12 Group franchise.