Can other C12 Group franchisees operate within another franchisee's exclusive territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Minimum Performance Standards. Franchisee must achieve a minimum level of target market penetration to maintain exclusivity within Territory. Franchisor defines Franchisee's "Baseline Target" using publicly available data, including, without limitation, the relevant Intelligent Direct, Inc (IDI) dba GbBIS business census in the Territory and research data provided by The Barna Group on the percentage of 'practicing Christians' or 'evangelical Christians' by region to establish the market potential in regard to the number of prospective member companies within the Territory. Franchisee must achieve the minimum performance levels set forth in Section IV.8.a. to maintain exclusivity within the Territory. If Franchisee fails to achieve such minimum performance levels, Franchisor may reduce the size of Franchisee's Territory, authorize another franchisee to operate a C12 Group franchise within Franchisee's Territory, or operate a C12 Group business within Franchisee's Territory.
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- Trade Name and Marks. Franchisor owns certain trademarks, service marks, trade names, logotypes, internet domain names, commercial symbols, copyrighted materials, and proprietary processes and materials which Franchisee is licensed to use. This includes The C12 Group® service mark which is registered with the USPTO as a Principal Register federal registration in addition to any other marks C12 may establish from time to time.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee is granted an exclusive territory to operate their C12 Group franchise. This territory is defined mutually between C12 Group and the franchisee, and is based on geography such as cities, zip codes, counties, states, or a radius around the franchisee's home address. Generally, no other franchisee has the right to establish, acquire, or operate a franchise within another franchisee's exclusive territory.
However, C12 Group outlines specific circumstances under which this exclusivity can be compromised. If a franchisee fails to achieve minimum performance standards, C12 Group has the right to authorize another franchisee to operate a C12 Group franchise within the original franchisee's territory. They may also reduce the size of the franchisee's territory or operate a C12 Group business within that territory themselves.
This condition highlights the importance of meeting performance expectations to maintain territorial exclusivity. While franchisees are protected from direct competition within their territory under normal circumstances, failure to meet minimum performance levels can result in C12 Group allowing other franchisees or even the franchisor itself to operate within the original franchisee's territory, significantly impacting their business.