What happens to C12 Group members in a franchisee's territory after the franchisee's agreement is terminated?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall hold all materials, practices, customer lists, contact lists, and any other proprietary information concerning Franchisor, the C12 brand, and C12 members confidential, and to return to Franchisor or destroy all such materials if this Agreement is terminated for any reason.
Upon the termination of this Agreement, the following shall apply: (a) all members in Franchisee's Territory must be notified of Franchisee's decision to leave C12 and they must be informed of their option to continue participating in CEO Forums and Key Player Forums led by a subsequent Area Chair to be appointed by Franchisor (Franchisor will formally present this option to the members, either collectively or individually); (b) members will be free to either remain C12 members or to make alternative CEO roundtable arrangements once they have been informed of their options; (c) Franchisee shall conduct itself in any such transition so that the best interests of the group members are served and that Kingdom unity and fellowship are preserved; and (d) Franchisee shall cease using all C12 materials, trade names and marks, and implying any association with C12.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, upon termination of the Franchise Agreement, all members in the franchisee's territory must be notified of the franchisee's departure from C12 Group. These members must be informed of their option to continue participating in CEO Forums and Key Player Forums, which will be led by a subsequent Area Chair appointed by C12 Group. C12 Group will formally present this option to the members, either collectively or individually.
Members have the freedom to decide whether to remain C12 Group members or to explore alternative CEO roundtable arrangements after being informed of their options. The departing franchisee is obligated to conduct themselves in a manner that serves the best interests of the group members and preserves Kingdom unity and fellowship during the transition. The franchisee must also cease using all C12 Group materials, trade names and marks, and implying any association with C12 Group.
This policy ensures continuity for C12 Group members and protects the integrity of the C12 Group network. By offering members the option to continue with a new Area Chair, C12 Group aims to minimize disruption and maintain the value of its services. The requirement for the departing franchisee to act in the members' best interests and preserve unity underscores the importance of the community aspect of C12 Group. This is somewhat unique to franchise systems, as the members are more than just customers; they are part of a peer advisory group with a shared faith-based mission.