What must a C12 Group franchisee do with proprietary information upon termination of the agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
hisor and making progress regarding the specific Business Plan Goals and Action Plan Goals that Franchisee established with Franchisor during Training Week.
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- Obligations Upon Termination. Upon termination of this Agreement for any reason, Franchisee shall perform the following:
- a. Franchisee shall immediately cease using all programs, process formats, materials, forms, manuals, systems, slogans, signs, marks, symbols, websites, or designs used with the C12 Franchised Business and return all manuals and member information to Franchisor.
- b. Franchisee shall pay Franchisor all past-due amounts plus late fees and interest as applicable.
- c. Franchisee shall maintain the confidentiality of all C12 proprietary material or confidential business process or member information related to Franchisee's prior C12 Franchised Business as required by Section IV.8.c. of this Agreement.
- d. Franchisee shall follow the post-termination process for communicating the termination of this Agreement with Franchisee's C12 members as outlined in Section IV.8.c. of this Agreement.
IX. Covenants
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- During the Term.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, upon termination of the Franchise Agreement, a franchisee has specific obligations regarding the use and handling of C12 Group's proprietary information. The franchisee must immediately stop using all programs, process formats, materials, forms, manuals, systems, slogans, signs, marks, symbols, websites, or designs associated with the C12 Franchised Business. All manuals and member information must be returned to C12 Group.
Furthermore, the franchisee is required to maintain the confidentiality of all C12 proprietary material, confidential business processes, and member information that was related to their C12 Franchised Business, as stipulated in Section IV.8.c of the agreement. The franchisee must also follow the post-termination process for communicating the termination of the agreement to their C12 members, as outlined in Section IV.8.c of the agreement.
In addition to these stipulations, the franchisee must return or destroy all unused C12 materials and provide C12 Group with all member contact information. The franchisee is responsible for ensuring compliance with these requirements by either returning the specified materials to C12 Group or destroying them, as directed by C12 Group. These measures ensure the protection of C12 Group's confidential information and business operations even after the termination of a franchise agreement.