If a C12 Group franchisee terminates the agreement, what is the geographic scope of the non-compete?

According to C12 Group's 2025 Franchise Disclosure Document, a franchisee is subject to a post-termination non-compete covenant. For a period of two years after the termination of the Franchise Agreement, the franchisee cannot own an interest in, be employed by, or be engaged with a Competitive Business. A Competitive Business is defined as any business that offers peer mentorship and coaching to Christian business leaders.

The geographic scope of this restriction includes the franchisee's Territory, within ten miles of the Territory, within the territory of any other C12 Group franchise, or within ten miles of the territory of any other C12 Group franchise. This prevents a former franchisee from directly competing with C12 Group or other franchisees in a defined area after leaving the system.

However, the post-termination non-competition obligations do not apply if the franchisee pays C12 Group the Exit Fee. This provides an option for franchisees who wish to continue in a similar business without adhering to the non-compete restrictions, provided they pay the specified fee. This type of non-compete agreement is common in franchising to protect the brand's market share and confidential information.