What are the geographic limits of the non-competition covenants for C12 Group after the franchise is terminated or expires?

According to the 2025 C12 Group Franchise Disclosure Document, if the Franchise Agreement is terminated, the franchisee is subject to a non-compete covenant. This covenant restricts the franchisee from owning an interest in, being employed by, or being engaged with a Competitive Business for two years after termination. A Competitive Business is defined as any business that offers peer mentorship and coaching to Christian business leaders.

The geographic scope of this non-compete includes the franchisee's Territory, within ten miles of the Territory, within the territory of any other C12 franchise, or within ten miles of the territory of any other C12 franchise. This means a former franchisee cannot operate a competing business within their original territory or near any other existing C12 Group franchise location.

However, the post-termination non-competition obligations do not apply if the franchisee pays C12 Group the Exit Fee. The FDD does not specify the amount of the Exit Fee, so a prospective franchisee should inquire about the amount of this fee and consider it when evaluating the franchise opportunity. Non-compete agreements are common in franchising to protect the brand and business model; however, the specific terms can vary significantly.