How much written notice is required for a C12 Group franchisee to terminate the agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- Termination by Franchisee. Franchisee may terminate this Agreement by ninety (90) days' written notice to Franchisor subject to the process described below. In keeping with the principles of transparency and walking mutually "in the light" of Scripture together that has led Franchisor and Franchisee to enter into this Agreement, prior to giving Franchisor written notice of termination, Franchisee must attend the next available Semi-Annual Chair Training and communicate Franchisee's reasons for termination to the other franchisees and Area Chairs in attendance. After receiving feedback from other franchisees and Area Chairs, Franchisee may thereafter terminate this Agreement without cause. If Franchisee terminates this
Agreement due to no fault of Franchisor and Franchisee engages in or intends to engage in a competitive business serving the same customers who were otherwise engaged as members in Franchisee's C12 Franchised Business, Franchisee shall pay Franchisor an exit fee equal to (a) the average Royalty Fees paid to Franchisor over the three (3) months preceding Franchisee's notice of termination (b) multiplied by twelve (12) ("Exit Fee").
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee may terminate the agreement by providing 90 days' written notice to the franchisor. However, prior to giving this written notice, the franchisee must attend the next available Semi-Annual Chair Training and communicate their reasons for termination to the other franchisees and Area Chairs in attendance. This requirement emphasizes the C12 Group's values of transparency and mutual understanding.
After receiving feedback from other franchisees and Area Chairs at the Semi-Annual Chair Training, the franchisee can then proceed to terminate the agreement without cause by providing the 90 days' written notice. This process ensures that the franchisee has explored all possible avenues for resolving any issues before deciding to terminate the agreement.
If a C12 Group franchisee terminates the agreement and then engages in a competitive business serving the same customers who were members in their C12 Group franchise, the franchisee must pay C12 Group an exit fee. This exit fee is calculated by multiplying the average Royalty Fees paid to C12 Group over the three months preceding the termination notice by twelve. This exit fee does not apply if the franchisee does not engage in a competitive business.