What is the non-solicitation protocol that C12 Group members must pledge to?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
gs in that geography, with the following exceptions and restrictions:
C12 Business Forum membership is open to all qualified business owners, CEOs, and general managers (and their staffs) who agree to comply with C12's behavioral protocols, maintain confidentiality, resolve conflict through biblical methods, and participate in the C12 'iron sharpening iron' peer group process which necessitates both listening and speaking in mutual 'business-as-ministry' efforts. All members must pledge to a non-solicitation protocol. Franchisee territory figures are based upon qualified/eligible individuals and, in good faith, all members of a Business Forum should meet or exceed minimum standards.
Once you have achieved two full Business Forums, you may also request an expansion of your Territory based on a proposed business plan. C12 must review and approve any such plan before it is pursued. Territory expansion will require a payment for each additional Unit of market potential (calculated as described in Item 5 & Item 7) according to C12's prevailing Franchise Fee (i.e., currently discounted for compliant franchisees seeking to expand at $20,000 per additional Unit). Any additional C12 Associate Chairs needed to service this expanded Territory must be mutually selected with the same high standards as Principal Chairs and trained according to C12's certification process. The cost for an Associate Chair for Training Weekis $10,000 and must be paid by the franchise and accompanied by a signed Associate Agreement at least two weeks prior to their Training Week. Franchise owners are required to complete the Associate Chair Checklist in coordination with the C12 Group development manager prior to Associate
Chair candidates attending New Chair Training to ensure alignment and success factors for new Area Chairs.
C12 grants exclusive territory to the C12 Principal Chairs (franchisees).
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, all members of a C12 Business Forum must pledge to a non-solicitation protocol. The FDD does not explicitly detail the specifics of this non-solicitation protocol. However, it does state that franchisees may not solicit current or prospective C12 members who live and work outside their own Territory via direct or indirect means. Direct methods include face-to-face contact, telephone calls, direct mail, telemarketing, and email. Indirect methods include using third parties or other channels of distribution such as the Internet or mutual friends.
If a franchisee receives solicited or unsolicited inquiries from outside their Territory, they must inform the prospect of the opportunity to attend any Business Forum meeting in their home Territory, which is referred to as their 'local' CEO Forum, as well as the franchisee's Business Forum before the prospect selects the specific Business Forum they would like to join. The franchisee must provide contact information for the franchisee in the prospect's home territory. The prospective member is then free to choose which Business Forum they would like to join based on their own needs, priorities, and evaluation. The Area Chair of that Business Forum then decides if they can accommodate the candidate based on the Business Forum's existing composition and the logistics involved in the monthly one-on-one consultation sessions with the client.
It is important for prospective franchisees to understand the non-solicitation protocol and how it impacts their ability to recruit members from outside their designated territory. While franchisees have exclusive rights within their territory, they must adhere to the rules regarding members who live or work outside of it. This ensures fair competition and allows potential members to choose the forum that best suits their needs. A prospective franchisee should seek clarification from C12 Group regarding the full scope of the non-solicitation protocol to fully understand its implications.