What is the geographic scope of the exclusive right granted to a C12 Group Franchisee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
odify the approved products or services in Franchisor's sole discretion from time to time, and Franchisee must comply with such modifications.
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- Territorial Restrictions. Franchisee will have the exclusive right to establish a C12 Group business within the Territory and to market C12 Group services, programs, and materials within the Territory.
Franchisee shall not host C12 Group meetings outside of the Territory. Franchisee may provide C12 Group services to members who live or work outside of the Territory but desire to participate in C12 Group meetings within the Territory. Similarly, individuals living within the Territory may engage with C12 Group businesses operated by other franchisees or Franchisor and its affiliates. Franchisee must reside within the Territory unless Franchisor approves otherwise in writing. Franchisee may only establish additional territories with Franchisor's written permission and by meeting Franchisor's then-current requirements for operating a C12 Group business within multiple territories. Franchisee shall not solicit current or prospective members who live and work outside of the Territory. If Franchisee is contacted by any prospective members who live and work outside of the Territory, Franchisee must inform such prospective members that there is another C12 Group business forum option (if applicable) and provide such prospective members with contact information of the C12 franchisee whose Territory the prospective members live and work within.
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- C12 Group Membership. C12 membership is limited to Christian business Owners, CEOs, Presidents, and General Managers (and their team members) who give assent to Franchisor's Doctrine Statement or seek to understand these values and principles as they seriously consider the claims of Christ. Each member agrees to group confidentiality, Christian conflict resolution, and being a part of an 'iron sharpening iron' peer group process that requires both listening and speaking in mutual ministry efforts.
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- Minimum Performance Standards. Franchisee must achieve a minimum level of target market penetration to maintain exclusivity within Territory.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee is granted the exclusive right to establish a C12 Group business and market its services, programs, and materials within a specific territory. This territory is defined by a map and a list of zip codes, which are attached to the Franchise Agreement. The franchisee is restricted from hosting C12 Group meetings outside of their designated territory. However, they can provide services to members who live or work outside the territory but wish to attend meetings within it.
Franchisees must reside within their territory unless they receive written approval from C12 Group to live elsewhere. Expanding into additional territories requires written permission from C12 Group and meeting their current requirements for operating in multiple territories. Franchisees are prohibited from soliciting current or prospective members who live and work outside their territory. If contacted by such individuals, the franchisee must inform them of other C12 Group options and provide contact information for the franchisee in their respective territory.
To maintain exclusivity within their territory, C12 Group franchisees must achieve a minimum level of target market penetration. C12 Group determines a franchisee's "Baseline Target" using publicly available data, including business census data and research data on the percentage of practicing or evangelical Christians in the region. Failure to meet these minimum performance levels may result in C12 Group reducing the size of the franchisee's territory, authorizing another franchisee to operate within the territory, or operating a C12 Group business within the territory themselves. This ensures that territories are actively developed and that market potential is realized.