factual

What fee must a C12 Group franchisee pay to avoid the post-termination non-competition agreement?

C12_Group Franchise · 2025 FDD

Answer 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 must pay the Exit Fee to avoid the post-termination non-competition agreement. The document states that for two years after the termination of the agreement, a franchisee cannot be involved with a competitive business within their territory, within ten miles of their territory, within the territory of any other C12 Group franchise, or within ten miles of any other C12 Group franchise territory. A competitive business is defined as one that offers peer mentorship and coaching to Christian business leaders.

However, this post-termination non-competition obligation does not apply if the franchisee pays C12 Group the Exit Fee. The specific amount of the Exit Fee is not detailed in the provided excerpts.

Prospective franchisees should carefully consider the implications of the post-termination non-competition agreement and the Exit Fee. It is crucial to understand the amount of the Exit Fee and factor it into their financial planning, especially if they anticipate potentially leaving the C12 Group franchise system. It would be prudent to discuss this fee and its implications with C12 Group representatives during the due diligence process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.