What is the process for mutually defining the territory between C12 Group and the franchisee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
fee of $2,500.
ITEM 12: TERRITORY
You will have a specific exclusive Territory, which is defined mutually by C12 and you and should be incorporated in your business plan development in conjunction with C12. This Territory will be defined based on geography, in terms of cities, zip codes, counties, states, or the radius around your home address. There is no minimum granted Territory size. No other franchisee shall have the right to establish, acquire, or operate a franchise within your exclusive Territory. You must reside within your Territory unless we approve otherwise. You will have the exclusive right to offer C12 services, programs, and materials in your Territory via the hosting of CEO Forum meetings and Key Players Forum meetings 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).
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee will have a specific exclusive territory that is defined mutually by C12 Group and the franchisee. This territory definition should be incorporated into the franchisee's business plan development in conjunction with C12 Group. The territory will be defined based on geography, using cities, zip codes, counties, states, or the radius around the franchisee's home address. There is no minimum granted territory size. Franchisees must reside within their territory unless C12 Group approves otherwise. No other franchisee can establish or operate a franchise within the exclusive territory. The franchisee has the exclusive right to offer C12 Group services, programs, and materials in their territory via hosting CEO Forum meetings and Key Players Forum meetings.
While the territory is geographically defined, its potential value is also determined by the estimated number of evangelical or "Bible-minded and practicing" Christians within the territory who are owners, CEOs, or senior managers of companies headquartered in the territory with at least ten employees and/or at least $1 million in annual revenue, excluding certain types of businesses. The territory is also described in terms of the number of Units included within such geographic region, with the estimated number of evangelical Christian chief executive officers and senior business managers employed by companies within the Territory having at least 10 employees and at least $1 million in annual revenue, as calculated by C12 using data from Intelligent Direct, Inc. ("IDI") dba GbBIS, Inc. and The Barna Group, Ltd.
C12 Group also has the unilateral right to redefine exclusive and non-exclusive Territory definitions but will endeavor to jointly discuss and plan such changes in advance if a franchisee fails 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). Each franchisee's Baseline Target is established on a case-by-case basis. During the initial launch period, the franchisee will be responsible for demonstrating good faith development pursuits demonstrated by execution of the business plan crafted during New Chair Training or making at least eight new contacts per week until two CEO Forums are operating with more than six members each. C12 Group reserves the right to impose a cure process in subsequent months in the case of failure to demonstrate good faith development of a Territory.
Once a franchisee has achieved two full Business Forums, they may request an expansion of their Territory based on a proposed business plan. C12 Group 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).