What non-competition covenants apply to a C12 Group franchisee during the term of the franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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- During the Term. Franchisee agrees to not own an interest or participate in any business viewed as competitive, injurious, or incompatible with Franchisor and the C12 Franchised Business. Franchisee agrees to engage in the C12 Franchised Business as Franchisee's primary vocation with no other vocational interests that may materially adversely impair Franchisee's ability to perform Franchisee's obligations hereunder.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is prohibited from owning an interest in or participating in any business that is seen as competitive, injurious, or incompatible with C12 Group and the franchised business. The franchisee must also commit to engaging in the C12 Group franchised business as their primary vocation, ensuring that they do not have other vocational interests that could negatively impact their ability to fulfill their obligations under the agreement. This means a franchisee must dedicate their full working efforts to the C12 Group franchise.
This non-compete clause ensures that franchisees remain fully committed to the C12 Group system and do not divert resources or expertise to competing ventures. This is a fairly standard practice in franchising, as franchisors want to protect their brand and market share. The requirement to dedicate primary vocational efforts is also common, as it helps ensure that franchisees are actively managing and growing their C12 Group business.
These restrictions are designed to protect C12 Group's business model and market position by preventing franchisees from engaging in activities that could undermine the brand or compete for the same customer base. Prospective franchisees should carefully consider these restrictions and ensure they are willing to fully commit to the C12 Group business before entering into a franchise agreement.