Which items in the C12 Group Disclosure Document discuss the franchisee's opening obligations?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
s and in other items of this disclosure document.**
| OBLIGATION | SECTION IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| a. Site selection and acquisition/lease | Not Applicable | Not Applicable |
| b. Pre-opening purchases/leases | IV, V | 5, 7 |
| c. Site development and other pre-opening | III, IV, V | 5, 7, 11 |
| requirements | ||
| d. Initial and ongoing training | III, IV | 5, 6, 7, 11 |
| e. Opening | III, IV | 7, 11, 15 |
| f. Fees | V, VI | 5, 6, 7 |
| g. Compliance with standards and | I, IV | 8, 16, 17 |
| Policies/Operating Manual | ||
| h. Trademarks and proprietary information | I, IV | 13, 14 |
| i. Restrictions on products/services offered | I, IV, IX | 8, 15, 16, 17 |
| j. Warranty and customer service | IV | 12, 16, 17 |
| requirements | ||
| k. Territorial development and sales quotas | I, IV, VI, VII | 5, 12, 16 |
| l. Ongoing product/service purchase | VI, VII | 6, 8, 11 |
| m. Maintenance, appearance, and remodeling | NA | NA |
| requirements | ||
| n. Insurance | IV | NA |
| o. Advertising | III, IV, VI, VII | 6, 7, 8, 11, 13, 14 |
| p. Indemnification | Not Applicable | Not Applicable |
| q. Owner’s participation/management/ staffing | IV, XVIII | 15 |
| r. Records and reports | IV | 6, 8, 11, 16 |
| s. Inspections and audits | IV | 16 |
| t. Transfer | X | 17 |
| u. Renewal | I, II | 12, 17 |
| v. Post-termination obligations | IV, VIII, IX, X | 12, 15, 17 |
| w. Non-competition covenants | I, IV, IX | 12, 17 |
| x. Dispute resolution | XII | 17 |
| ----------------------- | ----- | ---- |
ITEM 10: FINANCING
C12 does not offer financing of any kind for its franchisees. C12 does not guarantee any lease, note, or other obligation of franchisees.
ITEM 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, C12 is not required to provide you with any assistance.
Pre-Opening Assistance
Our obligations before commencing operation of your franchise include:
-
- C12 does not participate or assist in locating a site or negotiation for the purchase of or lease of a site for your business, nor does C12 approve the site of your business. C12 does not construct, remodel, or decorate your meeting premises. C12 does not hire or train employees that work for the Area Chairs' C12 businesses. C12 will engage you in a seven-step selection process including, but not limited to: initial inquiries, conversations and evaluations, application submittal and review, visitation of an existing C12 meeting, assessments (for example, on-line Leading Dimensions Profile), and due diligence (reference checks, credit check, criminal background check), exchange of disclosure documents and draft agreements, in-person meeting(s) with C12 leader(s), Board interviews, and final evaluation and examination prior to the New Chair Training.
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- Granting you a franchise to operate as a C12 franchisee within a designated Territory upon the payment of the Initial Franchise Fee (FA Sections III, IV, and V).
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- Providing you with an intensive five-week training program (New Chair Training), including four weeks of guided, self-study combined with weekly live webinar training with a C12 Trainer, followed by a one-week on-site Training Week at the C12 home office (FA Sections III, IV) which includes: orientation to C12's vision, mission, core values, doctrine, and promise; discussion of C12's process, materials, protocols, methods, affiliates, and C12 services/resources; actual CEO Forum visitation and audit; discussion of Territory development and your specific business plan and action plan; and approval of your business plan. Training Week must be completed to C12's satisfaction.
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- Providing you with a Franchise Training Manual (FA Section III) and additional training materials. The contents of the current version of the Franchisee Training is set forth in Exhibit E.
-
- Supplying initial start-up materials to aid in prospect development, member recruitment, and meeting facilitation, including guest binders, forms, stationery supplies, website-based resources, and promotional materials (FA Section III). The franchisee is responsible for purchasing and maintenance of a color printer and computer projector for their practice as needed with an
estimated cost between $300-$1000 to purchase (FA Section IV.1.b).
6.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, Item 9 and Item 11 discuss the franchisee's opening obligations. Item 9 provides a table outlining franchisee obligations and references sections in the agreement and disclosure document where these obligations are discussed. Specifically, it mentions that 'Opening' obligations are detailed in Sections III and IV of the agreement and Items 7, 11, and 15 of the Disclosure Document.
Item 11 lists the franchisor's assistance, advertising, computer systems, and training. It details C12 Group's pre-opening assistance, which includes a seven-step selection process, granting a franchise within a designated territory upon payment of the initial franchise fee, providing an intensive five-week training program, supplying a Franchise Training Manual, and providing initial start-up materials.
For a prospective C12 Group franchisee, understanding these items is crucial as they outline what is expected of them before opening their franchise and what support they can expect from C12 Group. This includes the initial investment, training, and the resources provided to aid in the launch of their franchise. It is important to note that C12 Group does not assist in site selection or employee hiring, which is a deviation from some franchise models where the franchisor provides more extensive location and staffing support.