What is the C12 Group franchisee's obligation regarding the best interests of group members during the transition after termination?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall hold all materials, practices, customer lists, contact lists, and any other proprietary information concerning Franchisor, the C12 brand, and C12 members confidential, and to return to Franchisor or destroy all such materials if this Agreement is terminated for any reason.
Upon the termination of this Agreement, the following shall apply: (a) all members in Franchisee's Territory must be notified of Franchisee's decision to leave C12 and they must be informed of their option to continue participating in CEO Forums and Key Player Forums led by a subsequent Area Chair to be appointed by Franchisor (Franchisor will formally present this option to the members, either collectively or individually); (b) members will be free to either remain C12 members or to make alternative CEO roundtable arrangements once they have been informed of their options; (c) Franchisee shall conduct itself in any such transition so that the best interests of the group members are served and that Kingdom unity and fellowship are preserved; and (d) Franchisee shall cease using all C12 materials, trade names and marks, and implying any association with C12.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee who is leaving the C12 Group system must notify all members in their territory about their departure. The franchisee must inform these members that they have the option to continue participating in CEO Forums and Key Player Forums under a new Area Chair appointed by C12 Group. C12 Group will formally present this option to the members, either as a group or individually.
Members are free to decide whether to remain C12 Group members or explore alternative CEO roundtable arrangements after they are informed of their options. The franchisee is obligated to conduct themselves during this transition in a way that serves the best interests of the group members and preserves Kingdom unity and fellowship. The departing franchisee must also stop using all C12 Group materials, trade names, and marks, and avoid implying any continued association with C12 Group.
This obligation ensures that C12 Group members are well-informed about their options and that the transition is handled professionally and ethically. It protects the interests of the members and maintains the integrity of the C12 Group brand. A prospective franchisee should understand that they have a responsibility to the members they serve, even when they decide to leave the C12 Group system.