What is the role of Area Chairs within The C12 Group franchise system?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee who meets all of Franchisor's ongoing training requirements (a "C12 Area Chair"). If circumstances should ever change, and such person is no longer both an owner and officer of Franchisee and Franchisee does not have a suitable replacement candidate for the role of C12 Area Chair (contingent on Franchisor's approval), then Franchisor may, in its sole discretion, terminate this Agreement or allow the Franchised Business to be transferred or sold to an approved third-party.
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Operations: The C12 Group, LLC was organized in 2005, and was converted to a Texas limited liability company in 2016 and relocated to San Antonio, Texas from North Carolina.
The Company is a resource for Christian business owners, chief executive officers and presidents who are called to lead with excellence, integrity, and balance according to Biblical standards. The Company sells franchises to Area Chairs, who then build a C12 practice by recruiting group members from among local business leaders. At year end, the Company had 193 Area Chairs, including Associate Chairs. It has over 4,000 group members across its various offerings: C12 Groups and Key Players.
VII. Associate Chairs and Territory Expansion
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- Once Franchisee attains the level of activity which includes two (2) CEO Forums of ten (10) or more members, Franchisee may seek Franchisor's permission to add Associate Chair(s) who will operate CEO Forums within the Territory under Franchisee's Franchised Business. Franchisor shall have the right, in its sole discretion, to approve of Franchisee's proposed Area Chairs. Franchisee's proposed Area Chairs must successfully complete Franchisor's New Chair Training.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, Area Chairs are franchisees who meet the franchisor's ongoing training requirements. These Area Chairs build a C12 practice by recruiting group members from among local business leaders. The FDD also mentions Associate Chairs, who appear to work with Principal Chairs to recruit group members. At the end of the noted period, C12 Group had 193 Area Chairs, including Associate Chairs, and over 4,000 group members across its various offerings, such as C12 Groups and Key Players.
If a franchisee who is also a C12 Area Chair ceases to be both an owner and officer of the franchise, and the franchisee does not have a suitable replacement candidate for the Area Chair role (subject to the franchisor's approval), C12 Group has the discretion to terminate the agreement or allow the franchise to be transferred or sold to an approved third party. This highlights the importance of the Area Chair role to the C12 Group franchise model and the potential consequences of not maintaining a qualified individual in that position.
Furthermore, once a franchisee attains the level of activity which includes two CEO Forums of ten or more members, the franchisee may seek C12 Group's permission to add Associate Chairs who will operate CEO Forums within the Territory under the franchisee's Franchised Business. C12 Group retains the right to approve the franchisee's proposed Area Chairs, and these proposed Area Chairs must successfully complete C12 Group's New Chair Training. This indicates that Area Chairs can expand their operations by adding Associate Chairs, subject to the franchisor's approval and training requirements.