Can a C12 Group franchisee serve those who live or work outside of their Territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You also will have the non-exclusive right to serve those who live or work outside of your Territory but desire to participate in Business Forum meetings hosted in your Territory provided that you follow the same exceptions and restrictions above.
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 C12 Group's 2025 Franchise Disclosure Document, franchisees have a non-exclusive right to serve individuals who live or work outside their designated territory, provided these individuals wish to attend Business Forum meetings hosted within the franchisee's territory. However, C12 Group franchisees are restricted from directly or indirectly soliciting current or prospective members outside their territory through methods such as face-to-face meetings, telephone calls, direct mail, telemarketing, or email. This includes solicitation via third parties, the internet, or mutual acquaintances.
If a C12 Group franchisee receives inquiries from individuals outside their territory, they must inform the prospect of the opportunity to attend a Business Forum meeting in their local territory and provide contact information for the relevant franchisee. The prospective member then has the option to choose which Business Forum they prefer to join, based on their individual needs and priorities. The Area Chair of the chosen Business Forum will then determine if they can accommodate the new member, considering the existing group composition and logistical factors related to monthly one-on-one consultation sessions.
These guidelines ensure that while C12 Group franchisees can serve members from outside their territory, they must respect the territorial rights of other franchisees and allow prospective members to make informed decisions about where they want to participate. This approach balances the potential for growth with the need to maintain a fair and orderly franchise system.