Does a C12 Group Franchisee have exclusive rights to establish a business within their territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
odify the approved products or services in Franchisor's sole discretion from time to time, and Franchisee must comply with such modifications.
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- Territorial Restrictions. Franchisee will have the exclusive right to establish a C12 Group business within the Territory and to market C12 Group services, programs, and materials within the Territory.
Franchisee shall not host C12 Group meetings outside of the Territory. Franchisee may provide C12 Group services to members who live or work outside of the Territory but desire to participate in C12 Group meetings within the Territory. Similarly, individuals living within the Territory may engage with C12 Group businesses operated by other franchisees or Franchisor and its affiliates. Franchisee must reside within the Territory unless Franchisor approves otherwise in writing. Franchisee may only establish additional territories with Franchisor's written permission and by meeting Franchisor's then-current requirements for operating a C12 Group business within multiple territories. Franchisee shall not solicit current or prospective members who live and work outside of the Territory. If Franchisee is contacted by any prospective members who live and work outside of the Territory, Franchisee must inform such prospective members that there is another C12 Group business forum option (if applicable) and provide such prospective members with contact information of the C12 franchisee whose Territory the prospective members live and work within.
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- C12 Group Membership. C12 membership is limited to Christian business Owners, CEOs, Presidents, and General Managers (and their team members) who give assent to Franchisor's Doctrine Statement or seek to understand these values and principles as they seriously consider the claims of Christ. Each member agrees to group confidentiality, Christian conflict resolution, and being a part of an 'iron sharpening iron' peer group process that requires both listening and speaking in mutual ministry efforts.
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- Minimum Performance Standards. Franchisee must achieve a minimum level of target market penetration to maintain exclusivity within Territory.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee does have the exclusive right to establish a C12 Group business within their designated territory and to market C12 Group services, programs, and materials within that territory. However, this exclusivity is contingent upon the franchisee meeting minimum performance standards.
The C12 Group defines the franchisee's "Baseline Target" using publicly available data, including business census data and research data on the percentage of practicing or evangelical Christians in the region. This data helps establish the market potential in terms of prospective member companies within the territory. To maintain exclusivity, the franchisee must achieve the minimum performance levels outlined in Section IV.8.a of the Franchise Agreement.
If a C12 Group franchisee fails to meet these minimum performance levels, C12 Group has the right to take corrective actions. These actions may include reducing the size of the franchisee's territory, authorizing another franchisee to operate within the original franchisee's territory, or even operating a C12 Group business directly within that territory. This highlights the importance of meeting performance goals to maintain the exclusive rights to the territory.
It's also important to note that while a franchisee has exclusive rights to host C12 Group meetings within their territory, they may provide services to members who live or work outside of the territory but wish to attend meetings within it. Conversely, individuals within the franchisee's territory may engage with C12 Group businesses operated by other franchisees or C12 Group itself. Franchisees are restricted from soliciting current or prospective members who live and work outside their territory and must inform prospective members about other C12 Group options if they are outside the franchisee's territory.