Where on the C12 Group Franchise Agreement Summary Page can I find the Baseline Target?
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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchisee's Baseline Target is specified in Section V.1. of the Franchise Agreement. The Franchise Agreement Summary Page will contain the Effective Date, and lists the Franchisor and Franchisee. The Summary Page is part of the agreement and all terms contained within are incorporated. The Baseline Target represents a 10% market penetration of businesses within the franchisee's territory that qualify for C12 membership.
Within 24 months of opening, a C12 Group franchisee must achieve the greater of 33% of the Baseline Target or at least one CEO Forum with a minimum of 10 CEO Members. Within three years of opening, the franchisee is expected to reach 50% of the Baseline Target and have at least 10 CEO Members.
Failure to meet these performance levels within the specified timeframes can lead to consequences. C12 Group may grant a 90-day period for the franchisee to meet the targets or demonstrate substantial progress in good faith. If the franchisee still fails to achieve these levels, C12 Group has the right to redefine the territory or terminate the Franchise Agreement.
The Baseline Target is determined by C12 Group using publicly available data, including business census data from Intelligent Direct, Inc (IDI) dba GbBIS and research data from The Barna Group on the percentage of 'practicing Christians' or 'evangelical Christians' by region. This data helps establish the market potential for prospective member companies within the franchisee's territory.