What are the restrictions on soliciting 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 C12 Group's 2025 Franchise Disclosure Document, franchisees face specific restrictions when soliciting current or prospective members outside their designated territory. A C12 Group franchisee is prohibited from using direct methods such as face-to-face meetings, telephone calls, direct mail, telemarketing, or email to solicit individuals outside of their territory. Indirect methods, including using third parties, other distribution channels like the Internet, or mutual friends, are also forbidden. This policy is designed to protect the territorial rights granted to each franchisee.
If a C12 Group franchisee receives an inquiry from someone outside their territory, whether solicited or unsolicited, they must inform the prospect of their option to attend a Business Forum meeting in their local territory. The franchisee must also provide contact information for the franchisee responsible for that local territory. This ensures that potential members have the opportunity to join a forum that is geographically convenient and relevant to them. The final decision on which Business Forum to join rests with the prospective member, based on their individual needs and priorities.
Ultimately, the Area Chair of the Business Forum that the prospective member chooses will decide whether they can accommodate the new member, considering the existing group composition and the logistics of monthly one-on-one consultation sessions. These restrictions are in place to maintain the integrity of the C12 Group network and ensure that each franchisee can effectively serve their designated area without undue competition or overlap.