factual

For how long after termination or expiration of the franchise agreement is a C12 Group franchisee subject to non-competition covenants?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

For two (2) years after the termination of this Agreement for any reason, Franchisee shall not directly or indirectly own an interest in or otherwise be employed by or engaged with a Competitive Business within the Territory, within ten (10) miles of the Territory, within the territory of any other C12 franchise, or within ten (10) miles of the territory of any other C12 franchise. For purposes of this Section, a "Competitive Business" is any business that offers peer mentorship and coaching to Christian business leaders. The post-termination non-competition obligations under this Section shall not apply if Franchisee pays Franchisor the Exit Fee described above.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)

What This Means (2025 FDD)

According to C12 Group's 2025 Franchise Disclosure Document, a franchisee is subject to a post-termination non-competition covenant for two years after the termination of the Franchise Agreement. This applies regardless of the reason for termination.

Specifically, during this two-year period, the franchisee cannot directly or indirectly own an interest in, be employed by, or be engaged with a business that is considered competitive to C12 Group. This restriction applies within the franchisee's territory, within ten miles of that territory, within the territory of any other C12 Group franchise, or within ten miles of any other C12 Group franchise territory. A "Competitive Business" is defined as any business that offers peer mentorship and coaching to Christian business leaders.

However, this post-termination non-competition obligation does not apply if the franchisee pays C12 Group the Exit Fee. This provides an option for franchisees who wish to engage in a competitive business immediately after leaving the C12 Group system, allowing them to do so by paying the specified fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.