What is the prohibited action regarding soliciting current or prospective C12 Group members outside of a franchisee's territory?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not solicit current or prospective C12 members who live and work outside your own Territory via direct (e.g., face-to-face, telephone, direct mail, telemarketing, email) or indirect means (e.g., via third parties, other channels of distribution such as the Internet or mutual friends). Any solicited or unsolicited inquiries from outside your Territory will necessitate that the candidate be given the opportunity to attend any Business Forum meeting in their home Territory (i.e., their 'local' CEO Forum) as well as your Business Forum before selecting the specific Business Forum they would like to join. If contacted by such a prospect, you must inform them that there is another C12 Business Forum option and provide contact information for the applicable franchisee. The qualified prospective member is free to elect, based on their own needs, priorities, and evaluation, which Business Forum they would like to join. The franchisee that is the Area Chair of that Business Forum must then decide if they are able to accommodate the candidate based on the Business Forum's existing composition and the logistics involved in the monthly one-on-one consultation sessions with the client.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees are restricted from soliciting current or prospective members who operate outside of their designated territory. This prohibition extends to both direct and indirect methods of solicitation. Direct methods include face-to-face meetings, telephone calls, direct mail, telemarketing, and email. Indirect methods encompass actions through third parties, alternative distribution channels like the Internet, or mutual acquaintances.
If a C12 Group franchisee receives inquiries from individuals outside their territory, the franchisee must inform the prospect of the option to attend a Business Forum meeting in their local territory. Contact information for the relevant franchisee in that area must also be provided. The prospective member then has the autonomy to choose which Business Forum they prefer to join, based on their individual needs and assessment.
The Area Chair of the selected Business Forum will then determine if they can accommodate the new member, considering the existing group composition and logistical factors related to monthly one-on-one consultation sessions. This policy ensures that each franchisee can focus on developing their exclusive territory without undue competition from other franchisees, while also providing potential members the opportunity to find the best fit for their needs.