What is the C12 Group franchisee's obligation regarding non-solicitation of members 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 soliciting current or prospective members who live and work outside of their designated territory. This non-solicitation rule applies to both direct methods, such as face-to-face interactions, telephone calls, direct mail, telemarketing, and email, and indirect methods, including using third parties, other distribution channels like the Internet, or mutual friends. This restriction is in place to protect the territorial rights granted to each franchisee.
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, as well as the franchisee's own Business Forum. The franchisee must provide contact information for the franchisee in the prospect's home territory, allowing the potential member to choose which Business Forum to join based on their individual needs and preferences. The Area Chair of the Business Forum the prospect chooses then decides whether they can accommodate the candidate, considering the existing group composition and the logistics of monthly one-on-one consultations.
This policy ensures that prospective members have the opportunity to connect with a forum that best suits their needs while respecting the territorial boundaries of each C12 Group franchise. It also highlights the importance of cooperation and communication between franchisees, as they must be willing to share potential members with their counterparts in other territories. Failure to comply with these non-solicitation rules could lead to disputes between franchisees and potential action from C12 Group.