Can C12 Group require additional Baseline Target requirements after the initial 36 months?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
C12 reserves the right to require additional Baseline Target requirements after 36 months, including achieving greater than 100% of your original Baseline Target (see the example at the end of this Item 12), in order to ensure continued market growth and development. Your original Baseline Target only represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in your Territory.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, C12 Group does reserve the right to require additional Baseline Target requirements after the initial 36 months of the franchise agreement. These additional requirements can include achieving greater than 100% of the original Baseline Target. The FDD specifies that this is to ensure continued market growth and development within the franchisee's territory. The original Baseline Target is only 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in the territory.
This provision means that franchisees may face increasing performance expectations as their franchise matures. While the initial Baseline Target is designed to be achievable, C12 Group can raise the bar to push for further market penetration. This could involve recruiting more members, expanding services, or otherwise growing the business beyond its initial scope. Franchisees should be prepared to adapt their strategies and invest additional resources to meet these potential increased targets.
For a prospective franchisee, this highlights the importance of understanding the long-term growth potential of their territory and the strategies C12 Group expects them to employ. It also underscores the need for ongoing communication with C12 Group to align on expectations and ensure that the additional Baseline Target requirements are realistic and achievable. Franchisees should also consider the resources and support C12 Group provides to help them meet these targets, as well as the potential consequences of failing to do so.
Overall, this clause in the FDD indicates that C12 Group is actively involved in managing the growth and development of its franchises and that franchisees should be prepared for evolving performance expectations over the term of their agreement. Prospective franchisees should carefully evaluate their ability to meet these potential future requirements before investing in a C12 Group franchise.