What must a C12 Group franchisee do if contacted by a prospective member from outside their territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not solicit current or prospective C12 members who live and work outside your own Territory via direct (e.g., face-to-face, telephone, direct mail, telemarketing, email) or indirect means (e.g., via third parties, other channels of distribution such as the Internet or mutual friends). Any solicited or unsolicited inquiries from outside your Territory will necessitate that the candidate be given the opportunity to attend any Business Forum meeting in their home Territory (i.e., their 'local' CEO Forum) as well as your Business Forum before selecting the specific Business Forum they would like to join. If contacted by such a prospect, you must inform them that there is another C12 Business Forum option and provide contact information for the applicable franchisee. The qualified prospective member is free to elect, based on their own needs, priorities, and evaluation, which Business Forum they would like to join. The franchisee that is the Area Chair of that Business Forum must then decide if they are able to accommodate the candidate based on the Business Forum's existing composition and the logistics involved in the monthly one-on-one consultation sessions with the client.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees are restricted from actively soliciting potential members outside of their designated territory through direct or indirect methods. This includes face-to-face interactions, telephone calls, direct mail, telemarketing, email, third parties, internet channels, or mutual acquaintances.
If a C12 Group franchisee receives an inquiry from a prospective member who lives and works outside their territory, the franchisee must inform the prospect of the option to attend a Business Forum meeting in their own territory (their 'local' CEO Forum) as well as the franchisee's Business Forum. This allows the candidate to make an informed decision based on their needs and priorities. The franchisee must also provide the contact information for the franchisee responsible for the prospect's home territory.
Ultimately, the prospective member has the freedom to choose which Business Forum they prefer to join based on their evaluation. The Area Chair of the selected Business Forum then determines whether they can accommodate the new member, considering the existing group composition and the logistical aspects of monthly one-on-one consultation sessions. This ensures that the C12 Group maintains a structured and effective environment for all members.