What are the potential consequences for a C12 Group franchisee who fails to maintain the confidentiality of customer information, considering their obligations outlined in Item 9?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ral turpitude, legal or illegal, are material grounds for immediate termination of thisagreement.
- c. Confidentiality and Conduct Upon Termination. Franchisee shall hold all materials, practices, customer lists, contact lists, and any other proprietary information concerning Franchisor, the C12 brand, and C12 members confidential, and to return to Franchisor or destroy all such materials if this Agreement is terminated for any reason. Upon the termination of this Agreement, the following shall apply: (a) all members in Franchisee's Territory must be notified of Franchisee's decision to leave C12 and they must be informed of their option to continue participating in CEO Forums and Key Player Forums led by a subsequent Area Chair to be appointed by Franchisor (Franchisor will formally present this option to the members, either collectively or individually); (b) members will be free to either remain C12 members or to make alternative CEO roundtable arrangements once they have been informed of their options; (c) Franchisee shall conduct itself in any such transition so that the best interests of the group members are served and that Kingdom unity and fellowship are preserved; and (d) Franchisee shall cease using all C12 materials, trade names and marks, and implying any association with C12. Franchisee will, upon termination of this Agreement, without limiting any other obligations under this Agreement, return or destroy all unused C12 materials and provide Franchisor with all member contact information.
- d. Money-Back Guarantee.
What This Means (2025 FDD)
Based on the 2025 FDD, C12 Group franchisees are obligated to maintain the confidentiality of customer information, and failure to do so can lead to specific repercussions, especially upon termination of the franchise agreement. Franchisees must hold all materials, practices, customer lists, contact lists, and any other proprietary information concerning C12 Group, the C12 brand, and C12 members confidential. If the agreement is terminated for any reason, the franchisee is required to return to C12 Group or destroy all such materials. This obligation extends beyond the active term of the agreement, emphasizing the importance of safeguarding sensitive information.
Upon termination, all members in the franchisee's territory must be notified about the franchisee's departure from C12 Group. These members must be informed of their option to continue participating in CEO Forums and Key Player Forums under a new Area Chair appointed by C12 Group. Members have the freedom to either remain C12 Group members or explore alternative CEO roundtable arrangements after being informed of their choices. The franchisee is expected to conduct themselves during this transition in a manner that prioritizes the best interests of the group members and preserves Kingdom 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.
Breaches of conduct, including moral turpitude, legal or illegal, are material grounds for immediate termination of the agreement. This highlights the importance of ethical behavior and adherence to the standards set by C12 Group. The franchisee's role as a leader requires them to avoid questionable behaviors that could cause members or customers to stumble, exercising wisdom and prudence in their actions. Franchisees and their Area Chairs are expected to abstain from the use of all smoking products as a personal sacrifice and restraint in service to C12 members and to preserve Christian witness.
In practical terms, a C12 Group franchisee must implement robust measures to protect confidential information throughout the duration of the franchise agreement and even after termination. This includes secure storage and handling of customer data, adherence to ethical conduct, and careful management of the transition process if the agreement ends. Failure to comply with these obligations can result in termination of the agreement and potential legal ramifications for breach of confidentiality. Prospective franchisees should carefully review the terms of the franchise agreement and seek legal counsel to fully understand their obligations and the potential consequences of non-compliance.