Where in the C12 Group Franchise Agreement can I find the specific Baseline Target for my franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
collects the registration and/or membership fees from its members.
8. Performance, Conduct, and Confidentiality
a. Baseline Target Performance. Franchisee shall pursue the business plan developed during Franchisee's New Chair Training and strive to achieve a ten percent (10%) market penetration of the businesses within the Territory that qualify for C12 membership (the "Baseline Target"). Franchise's Baseline Target is set forth in Section V.1. of this Agreement. Within twenty-four (24) months of opening for business, Franchisee must achieve the greater of (i) thirty-three percent (33%) of the Baseline Target or (ii) at least one (1) CEO Forum with at least ten (10) CEO Members. Franchisee must achieve fifty percent (50%) of the Baseline Target and have at least ten (10) CEO Members within three (3) years of opening for business. If Franchisee fails to achieve either of these performance levels, Franchisee shall have ninety (90) days in which to meet such levels or, if permitted by Franchisor, ninety (90) days in which to make substantial progress in good faith, as determined in Franchisor's sole discretion, toward such levels. If Franchisee fails to achieve these performance levels within ninety (90) days of receiving notice from Franchisor, Franchisor may, in its sole discretion, redefine the Territory or terminate the Franchise
Agreement.
- b. Biblical Conduct. Franchisee acknowledges that being a C12 franchisee and Area Chair represents a unique role and Kingdom responsibility and agrees that Franchisee will work in a manner consistent with biblical principles in order to contribute to the unity, peace, mutual trust, hope, love, and respect of those engaged in C12 at all levels.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the specific Baseline Target for a franchisee is detailed in Section V.1 of the Franchise Agreement. Additionally, Section IV.8.a of the agreement also contains information regarding the minimum performance levels, which are tied to maintaining exclusivity within the franchisee's territory.
The Baseline Target represents a 10% market penetration of businesses within the territory that qualify for C12 Group membership. Franchisees are expected to pursue the business plan developed during their New Chair Training to achieve this target. Within 24 months of opening, a franchisee must reach the greater of 33% of the Baseline Target or have at least one CEO Forum with a minimum of ten CEO Members. Within three years, they must achieve 50% of the Baseline Target and have at least ten CEO Members.
Failure to meet these performance levels can result in consequences. C12 Group may grant a 90-day period to meet the required levels or demonstrate substantial progress. If the franchisee still fails to comply, C12 Group has the right to redefine the territory or terminate the Franchise Agreement. The franchisor defines the Baseline Target using publicly available data, including business census data and research data on the percentage of practicing or evangelical Christians by region to establish the market potential within the territory.