What is the name of the fee that allows a C12 Group franchisee to avoid the post-termination non-competition agreement?
C12_Group Franchise · 2025 FDDAnswer 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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee can avoid the post-termination non-competition agreement by paying the "Exit Fee."
Specifically, for two years after the termination of the Franchise Agreement, a franchisee is restricted from owning an interest in or being involved with a Competitive Business within their territory, within ten miles of their territory, within the territory of any other C12 franchise, or within ten miles of any other C12 franchise's territory. A Competitive Business is defined as one that offers peer mentorship and coaching to Christian business leaders.
However, this non-competition obligation is waived if the franchisee pays C12 Group the Exit Fee. The FDD excerpt does not specify the amount of the Exit Fee, so a prospective franchisee should inquire about the amount of this fee and under what conditions it is assessed.