What is the C12 Group franchisee prohibited from doing after the termination of the franchise agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
s primary vocation with no other vocational interests that may materially adversely impair Franchisee's ability to perform Franchisee's obligations hereunder.
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- Post-Termination Non-Competition. For two (2) years after the termination of this Agreement for any reason, Franchisee shall not directly or indirectly own an interest in or otherwise be employed by or engaged with a Competitive Business within the Territory, within ten (10) miles of the Territory, within the territory of any other C12 franchise, or within ten (10) miles of the territory of any other C12 franchise. For purposes of this Section, a "Competitive Business" is any business that offers peer mentorship and coaching to Christian business leaders. The post-termination non-competition obligations under this Section shall not apply if Franchisee pays Franchisor the Exit Fee described above.
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- Non-Solicitation of Members. Franchisee agrees to not purposely solicit (either directly or indirectly) any prospective C12 member who lives and works in the territory of another C12 franchisee. Such 'poaching' is deemed by C12 to be a material breach of this Agreement that strikes at the unity of the C12 franchise system and is grounds for termination upon notice to Franchisee. If one of Franchisee's C12 members desires, for any reason, to consider becoming a member of a Business Forum in another C12 franchisee's territory and personally initiates a request to transfer their membership to another group, Franchisee shall enable the member to attend a full meeting in the other group (presuming room exists for their potential membership) before they reach a final decision. This C12 policy is aimed at serving the best
interests of each member and is ultimately deemed as the best policy for C12 franchisees.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, there are several restrictions placed on franchisees after the termination of their franchise agreement. Specifically, for a period of two years post-termination, a franchisee is prohibited from owning an interest in, being employed by, or engaging with a Competitive Business within their former territory, within ten miles of that territory, within any other C12 franchise territory, or within ten miles of any other C12 franchise territory. A "Competitive Business" is defined as one that offers peer mentorship and coaching to Christian business leaders. However, this non-competition obligation is waived if the franchisee pays C12 Group the Exit Fee.
Additionally, upon termination of the agreement for any reason, the franchisee must immediately stop using all programs, processes, formats, materials, forms, manuals, systems, slogans, signs, marks, symbols, websites, or designs associated with the C12 Franchised Business. They are also required to return all manuals and member information to C12 Group. The franchisee must also settle all outstanding payments, including past-due amounts, late fees, and interest.
Furthermore, the franchisee is obligated to maintain the confidentiality of all C12 Group's proprietary material, confidential business processes, and member information, as stipulated in Section IV.8.c of the agreement. They must also adhere to the post-termination process for communicating the termination to their C12 members, as outlined in the same section. These measures ensure the protection of C12 Group's business model, confidential information, and franchise network integrity even after a franchise agreement ends.