Does a C12 Group franchisee have exclusive rights to offer services within their territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You will have a specific exclusive Territory, which is defined mutually by C12 and you and should be incorporated in your business plan development in conjunction with C12. This Territory will be defined based on geography, in terms of cities, zip codes, counties, states, or the radius around your home address. There is no minimum granted Territory size. No other franchisee shall have the right to establish, acquire, or operate a franchise within your exclusive Territory. You must reside within your Territory unless we approve otherwise. You will have the exclusive right to offer C12 services, programs, and materials in your Territory via the hosting of CEO Forum meetings and Key Players Forum meetings in that geography, with the following exceptions and restrictions:
C12 Business Forum membership is open to all qualified business owners, CEOs, and general managers (and their staffs) who agree to comply with C12's behavioral protocols, maintain confidentiality, resolve conflict through biblical methods, and participate in the C12 'iron sharpening iron' peer group process which necessitates both listening and speaking in mutual 'business-as-ministry' efforts. All members must pledge to a non-solicitation protocol. Franchisee territory figures are based upon qualified/eligible individuals and, in good faith, all members of a Business Forum should meet or exceed minimum standards.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees are generally granted an exclusive territory. The territory is defined mutually between C12 Group and the franchisee, typically based on geography such as cities, zip codes, counties, states, or a radius around the franchisee's home address. The franchisee has the exclusive right to offer C12 Group services, programs, and materials within this defined territory.
However, this exclusivity is subject to certain conditions and exceptions. Franchisees must meet minimum performance standards related to market penetration to maintain their exclusive territory. Failure to meet these standards could result in C12 Group reducing the territory size, authorizing another franchisee to operate within the original territory, or C12 Group itself operating a business within that territory. Additionally, while franchisees cannot host C12 Group meetings outside their territory, they can provide services to members who live or work outside the territory but wish to attend meetings within it. Similarly, individuals within a franchisee's territory may engage with C12 Group businesses operated by other franchisees or C12 Group itself.
C12 Group also retains the right to negotiate "enterprise" relationships with national brands, and franchisees are required to honor the pricing offered through these relationships. Furthermore, franchisees are restricted from owning an interest in or participating in any business that C12 Group deems competitive, injurious, or incompatible with the C12 Group franchise. Franchisees must also primarily focus on the C12 Group business and not engage in other vocational interests that could negatively impact their performance.
In summary, while C12 Group offers an exclusive territory, maintaining that exclusivity depends on meeting performance benchmarks and adhering to certain restrictions. Prospective franchisees should carefully consider these factors and discuss the specific territory definition and performance expectations with C12 Group during their due diligence.