What happens if a C12 Group franchisee violates the non-competition covenant during the term of the franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
rocess for communicating the termination of this Agreement with Franchisee's C12 members as outlined in Section IV.8.c. of this Agreement.
IX. Covenants
-
- During the Term. Franchisee agrees to not own an interest or participate in any business viewed as competitive, injurious, or incompatible with Franchisor and the C12 Franchised Business. Franchisee agrees to engage in the C12 Franchised Business as Franchisee's primary vocation with no other vocational interests that may materially adversely impair Franchisee's ability to perform Franchisee's obligations hereunder.
-
- Post-Termination Non-Competition.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee agrees not to own any interest or participate in any business viewed as competitive, injurious, or incompatible with C12 Group during the term of the franchise agreement. The franchisee also agrees to engage in the C12 Group franchised business as their primary vocation, without other vocational interests that could materially and adversely impair their ability to fulfill their obligations under the agreement.
Additionally, the franchisee agrees not to purposely solicit any prospective C12 member who lives and works in another C12 franchisee's territory. C12 Group deems such 'poaching' to be a material breach of the agreement, which can result in termination of the agreement upon notice to the franchisee.
These covenants are designed to protect C12 Group's business model and the interests of its franchisees by preventing conflicts of interest and maintaining the integrity of the franchise system. Franchisees should be aware of these restrictions and ensure they comply with them to avoid potential termination of their franchise agreement.