Does the obligation to maintain confidentiality of C12 Group's proprietary material after termination have any exceptions?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. Franchisee shall maintain the confidentiality of all C12 proprietary material or confidential business process or member information related to Franchisee's prior C12 Franchised Business as required by Section IV.8.c. of this Agreement.
- d. Franchisee shall follow the post-termination process for communicating the termination of this Agreement with Franchisee's C12 members as outlined in Section IV.8.c. of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group franchisees are obligated to maintain the confidentiality of all proprietary material, confidential business processes, and member information even after the termination of the Franchise Agreement.
Specifically, upon termination, the franchisee must adhere to Section IV.8.c. of the agreement, which outlines the post-termination process for communicating the termination to C12 Group members. This includes notifying members of the franchisee's departure and informing them of their option to continue participating in CEO Forums and Key Player Forums under a new Area Chair appointed by C12 Group. Members are then free to decide whether to remain C12 Group members or seek alternative arrangements.
During this transition, the franchisee is expected to act in the best interests of the group members, preserving unity and fellowship. The franchisee must also cease using all C12 Group materials, trade names, and marks, and avoid implying any continued association with C12 Group. The FDD states that the franchisee must return or destroy all unused C12 Group materials and provide C12 Group with all member contact information.