What are the requirements for a C12 Group franchisee to maintain their exclusive territory rights?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Training to ensure alignment and success factors for new Area Chairs.
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. Each franchisee's Baseline Target is established on a case-by-case basis. C12 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. 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. 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 reserves the right to impose a cure process in subsequent months in the case of failure to demonstrate good faith development of a Territory.
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.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, maintaining exclusive territory rights depends on meeting specific market penetration levels. A C12 Group franchisee must achieve a minimum required level of target market penetration, specifically 33% of the Baseline Target within 24 months and 50% within 36 months of becoming a franchisee. This also includes having at least one CEO Forum with at least ten CEO Members within two years of opening the business, should 33% of the Baseline Target be less than ten CEOs.
The Baseline Target is established on a case-by-case basis and represents the number of C12 members needed for a given territory to achieve the determined level of market penetration. The initial Baseline Target represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in the franchisee's territory. During the initial launch period, a franchisee must demonstrate good faith development efforts by executing 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 redefine exclusive and non-exclusive Territory definitions if a franchisee fails to meet these minimum required levels of target market penetration. However, C12 Group will endeavor to jointly discuss and plan such changes in advance. Additionally, C12 Group reserves the unilateral right to terminate a Franchise Agreement for nonperformance after a 90-day right to cure on the part of the franchisee. C12 Group also reserves the right to require additional Baseline Target requirements after 36 months, including achieving greater than 100% of the original Baseline Target, to ensure continued market growth and development.
Furthermore, within the first ninety days after executing the Franchise Agreement, C12 Group may terminate the Franchise Agreement or revise the territorial size and exclusivity if the franchisee has not started building a CEO Forum. This is demonstrated by making eight contacts per week on average, attending mandatory training sessions, launching a direct marketing campaign, having a specific plan for the first C12 introductory event and/or initial CEO Forum in the Territory, and reporting progress regarding the specific Business Plan Goals and Action Plan Goals established during Training Week.