Who has the right to approve a C12 Group franchisee's proposed Area Chairs?

According to C12 Group's 2025 Franchise Disclosure Document, the franchisor has the sole right to approve a franchisee's proposed Area Chairs. Specifically, once a franchisee reaches a level of activity that includes two CEO Forums with at least ten members each, the franchisee can seek permission from C12 Group to add Associate Chairs. These Associate Chairs will then operate CEO Forums within the franchisee's territory under the franchised business. However, the franchisor retains the discretion to approve or disapprove these proposed Area Chairs.

This approval process underscores C12 Group's control over the quality and standards of its franchise network. By maintaining the right to approve Area Chairs, C12 Group can ensure that individuals operating within the system meet its criteria and uphold its values. This is a common practice in franchising, where franchisors often exercise control over key personnel to protect brand reputation and maintain consistency across locations.

Furthermore, the FDD states that the franchisee's proposed Area Chairs must successfully complete C12 Group's New Chair Training. This requirement ensures that all Area Chairs are properly trained and equipped to deliver the C12 Group's services and programs effectively. This training requirement, coupled with the franchisor's approval rights, provides a mechanism for C12 Group to maintain quality control and consistency throughout its franchise system.

For a prospective franchisee, this means that while they can propose Area Chairs to help manage and grow their business, C12 Group has the final say in who is approved. This highlights the importance of finding candidates who not only meet the franchisee's standards but also align with the franchisor's requirements and are likely to be approved by C12 Group.