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What is the C12 Group's policy on discontinuing the Franchise Agreement?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

provided that you follow the same exceptions and restrictions above.

The Franchise Agreement is automatically renewed on a year-to-year basis until (1) either you give C12 a notice to discontinue at least 90 days prior to the end of the then-current term, or C12 gives you a notice to discontinue at least 90 days prior to the end of the then-current term, (2) either party should breach its terms or conditions, or (3) franchisee fails to consent to any updates or changes in the C12 business model and Operations Manual which may have occurred during the prior year by signing a Franchise Compliance Administrative Update letter each year. Compliance with the Field Operations Manual will be understood to include the Brand Standards, mandatory elements of the Meeting Playbook and One-on- One Playbook, and any standard components of the C12 member experience put forth by the C12 Group, LLC.

Except as specifically stated herein, we cannot engage in activities in your Territory that are competitive with your franchise.

Source: Item 12 — TERRITORY (FDD pages 29–32)

What This Means (2025 FDD)

According to the 2025 C12 Group Franchise Disclosure Document, the Franchise Agreement is automatically renewed on a year-to-year basis unless certain conditions are met. Either the franchisee or C12 Group can provide a notice to discontinue the agreement at least 90 days before the end of the current term. This allows both parties the option to end the agreement with sufficient notice.

The agreement can also be discontinued if either party breaches the terms and conditions outlined in the Franchise Agreement. This is a standard clause in franchise agreements, ensuring that both C12 Group and the franchisee adhere to their contractual obligations. Additionally, the agreement can be discontinued if the franchisee fails to consent to updates or changes in the C12 Group business model and Operations Manual. This consent is documented through a Franchise Compliance Administrative Update letter, which must be signed each year.

Compliance with the Field Operations Manual is essential, including adherence to Brand Standards, mandatory elements of the Meeting Playbook and One-on-One Playbook, and any standard components of the C12 member experience. These standards are put forth by C12 Group, LLC. This ensures that all franchisees maintain a consistent brand experience and follow the established operational procedures. C12 Group also reserves the unilateral right to terminate a Franchise Agreement for nonperformance after a 90-day right to cure on the part of the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.