To whom must a C12 Group franchisee communicate their reasons for termination at the Semi-Annual Chair Training?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- Termination by Franchisee. Franchisee may terminate this Agreement by ninety (90) days' written notice to Franchisor subject to the process described below. In keeping with the principles of transparency and walking mutually "in the light" of Scripture together that has led Franchisor and Franchisee to enter into this Agreement, prior to giving Franchisor written notice of termination, Franchisee must attend the next available Semi-Annual Chair Training and communicate Franchisee's reasons for termination to the other franchisees and Area Chairs in attendance. After receiving feedback from other franchisees and Area Chairs, Franchisee may thereafter terminate this Agreement without cause. If Franchisee terminates this
Agreement due to no fault of Franchisor and Franchisee engages in or intends to engage in a competitive business serving the same customers who were otherwise engaged as members in Franchisee's C12 Franchised Business, Franchisee shall pay Franchisor an exit fee equal to (a) the average Royalty Fees paid to Franchisor over the three (3) months preceding Franchisee's notice of termination (b) multiplied by twelve (12) ("Exit Fee").
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee who intends to terminate their agreement must first communicate their reasons for termination to the other franchisees and Area Chairs in attendance at the next available Semi-Annual Chair Training. This communication must occur before providing written notice of termination to C12 Group.
This requirement is rooted in the principles of transparency that C12 Group emphasizes. The purpose of this communication is to receive feedback from peers before making a final decision to terminate the agreement.
After receiving feedback from other franchisees and Area Chairs, the franchisee may then proceed to terminate the agreement without cause by providing a 90-day written notice to C12 Group. However, if the franchisee terminates the agreement and engages in a competitive business serving the same customers, they will be required to pay C12 Group an exit fee. This exit fee is equal to the average Royalty Fees paid over the three months preceding the termination notice, multiplied by twelve.