What is the C12 Group's policy on granting additional Territory Units in an area?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not automatically receive the right to additional Territory Units in your area. Additionally, there are no options, rights of first refusal or similar rights under theFranchise Agreement.
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
C12 grants exclusive territory to the C12 Principal Chairs (franchisees). If you fail to meet minimum required levels of target market penetration (i.e., 33% of Baseline Target within 24 months and 50% within 36 months of becoming a franchisee with at least one (1) CEO Forum with at least ten (10) CEO Members within two years of opening the business should 33% of Baseline Target be less than ten (10) CEOs), C12 has the unilateral right to redefine exclusive and non-exclusive Territory definitions but will endeavor to jointly discuss and plan such changes in advance.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, franchisees do not automatically receive the right to additional Territory Units in their area. The Franchise Agreement with C12 Group does not include options, rights of first refusal, or similar rights for additional territory. However, once a franchisee has established two full Business Forums, they can request an expansion of their territory based on a proposed business plan, which C12 Group must review and approve. Territory expansion requires a payment for each additional Unit of market potential, calculated as described in Item 5 & Item 7, according to C12's prevailing Franchise Fee, which is currently discounted for compliant franchisees seeking to expand at $20,000 per additional Unit.
If the territory expansion requires additional C12 Associate Chairs, they 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 Week is $10,000, which must be paid by the franchise, 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.
It is important to note that C12 Group can revise a franchisee's territorial size and exclusivity if the franchisee has not started building a CEO Forum within the first 90 days after executing the Franchise Agreement, based on specific duties outlined in the Franchise Agreement, Section VIII.6. Furthermore, C12 Group grants exclusive territory to its Principal Chairs (franchisees), but if a franchisee fails to meet minimum required levels of target market penetration (33% of Baseline Target within 24 months and 50% within 36 months), C12 Group has the unilateral right to redefine exclusive and non-exclusive Territory definitions, although they will endeavor to jointly discuss and plan such changes in advance. 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.