Must a C12 Group franchisee's territory be defined based on geography?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
fee of $2,500.
ITEM 12: TERRITORY
You will have a specific exclusive Territory, which is defined mutually by C12 and you and should be incorporated in your business plan development in conjunction with C12. This Territory will be defined based on geography, in terms of cities, zip codes, counties, states, or the radius around your home address. There is no minimum granted Territory size. No other franchisee shall have the right to establish, acquire, or operate a franchise within your exclusive Territory. You must reside within your Territory unless we approve otherwise. You will have the exclusive right to offer C12 services, programs, and materials in your Territory via the hosting of CEO Forum meetings and Key Players Forum meetings in that geography, with the following exceptions and restrictions:
C12 Business Forum membership is open to all qualified business owners, CEOs, and general managers (and their staffs) who agree to comply with C12's behavioral protocols, maintain confidentiality, resolve conflict through biblical methods, and participate in the C12 'iron sharpening iron' peer group process which necessitates both listening and speaking in mutual 'business-as-ministry' efforts. All members must pledge to a non-solicitation protocol. Franchisee territory figures are based upon qualified/eligible individuals and, in good faith, all members of a Business Forum should meet or exceed minimum standards.
Once you have achieved two full Business Forums, you may also request an expansion of your Territory based on a proposed business plan. C12 must review and approve any such plan before it is pursued. Territory expansion will require a payment for each additional Unit of market potential (calculated as described in Item 5 & Item 7) according to C12's prevailing Franchise Fee (i.e., currently discounted for compliant franchisees seeking to expand at $20,000 per additional Unit). Any additional C12 Associate Chairs needed to service this expanded Territory must be mutually selected with the same high standards as Principal Chairs and trained according to C12's certification process. The cost for an Associate Chair for Training Weekis $10,000 and must be paid by the franchise and accompanied by a signed Associate Agreement at least two weeks prior to their Training Week. Franchise owners are required to complete the Associate Chair Checklist in
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee's territory is defined geographically, using cities, zip codes, counties, states, or the radius around the franchisee's home address. The territory is determined mutually between C12 Group and the franchisee and should align with the franchisee's business plan. The FDD specifies that no other franchisee can establish or operate a franchise within the franchisee's exclusive territory, and the franchisee must reside within their territory unless C12 Group approves otherwise. The franchisee has the exclusive right to offer C12 Group services, programs, and materials in their territory by hosting CEO Forum and Key Players Forum meetings.
While the territory is geographically defined in the Franchise Agreement, its potential value to a C12 Group franchisee is determined by two factors: the geographic size and the estimated number of evangelical or "Bible-minded and practicing" Christians within the territory who are owners, CEOs, or senior managers of companies headquartered in the territory with at least ten employees and $1 million in annual revenue, excluding certain types of businesses. The territory is also described in terms of the number of Units included within the geographic region, based on the estimated number of evangelical Christian chief executive officers and senior business managers employed by companies within the Territory having at least 10 employees and at least $1 million in annual revenue, as calculated by C12 Group using data from Intelligent Direct, Inc. dba GbBIS, Inc. and The Barna Group, Ltd.
For example, the Indianapolis, Indiana Metropolitan Statistical Area (MSA) included 5,590 Target Companies, with 15% of the chief executive officers or equivalent senior business managers of such Target Companies likely to be evangelical Christians. Therefore, the number of Units corresponding to that Territory would be equal to 3.49. The calculation is as follows: 5,590 Target Companies x 15% Evangelical Rate x 10% Market Penetration / 24 CEOs per Unit = 3.49. This Baseline Target represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in the franchisee's Territory.
A C12 Group franchisee is permitted to relocate their business at their own expense and discretion, as long as the relocation occurs within the geographic territory boundaries defined in the Franchise Agreement. The franchisee is not permitted to relocate the business outside of their Territory under any circumstances. Additionally, the franchisee does not automatically receive the right to additional Territory Units in their area, and there are no options, rights of first refusal, or similar rights under the Franchise Agreement.