Which sections of the C12 Group agreement address post-termination obligations?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
s primary vocation with no other vocational interests that may materially adversely impair Franchisee's ability to perform Franchisee's obligations hereunder.
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- Post-Termination Non-Competition. For two (2) years after the termination of this Agreement for any reason, Franchisee shall not directly or indirectly own an interest in or otherwise be employed by or engaged with a Competitive Business within the Territory, within ten (10) miles of the Territory, within the territory of any other C12 franchise, or within ten (10) miles of the territory of any other C12 franchise. For purposes of this Section, a "Competitive Business" is any business that offers peer mentorship and coaching to Christian business leaders. The post-termination non-competition obligations under this Section shall not apply if Franchisee pays Franchisor the Exit Fee described above.
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- Non-Solicitation of Members. Franchisee agrees to not purposely solicit (either directly or indirectly) any prospective C12 member who lives and works in the territory of another C12 franchisee. Such 'poaching' is deemed by C12 to be a material breach of this Agreement that strikes at the unity of the C12 franchise system and is grounds for termination upon notice to Franchisee. If one of Franchisee's C12 members desires, for any reason, to consider becoming a member of a Business Forum in another C12 franchisee's territory and personally initiates a request to transfer their membership to another group, Franchisee shall enable the member to attend a full meeting in the other group (presuming room exists for their potential membership) before they reach a final decision. This C12 policy is aimed at serving the best
interests of each member and is ultimately deemed as the best policy for C12 franchisees. In such a scenario, Franchisee agrees that there will be no compensation to either Franchisee or the other C12 franchisee as a result of a member choosing to make such a transfer.
X. Transfer, Sale, or Assignment
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, several sections of the franchise agreement outline obligations that continue after the agreement is terminated. Specifically, Section IX addresses post-termination non-competition, stating that for two years after termination, a franchisee cannot be involved with a competitive business within their territory, ten miles of their territory, or within ten miles of any other C12 franchise territory. This restriction does not apply if the franchisee pays the Exit Fee.
Section X covers obligations upon termination, requiring the franchisee to cease using C12 Group's programs, materials, and systems, and to return all manuals and member information. The franchisee must also pay any outstanding amounts owed to C12 Group, maintain the confidentiality of proprietary material and member information, and follow the prescribed post-termination communication process with C12 Group members.
Additionally, the agreement states that upon termination, the franchisee must return or destroy all unused C12 Group materials and provide all member contact information to C12 Group. Section XVII, titled "Survival," explicitly states that all provisions imposing an obligation after termination will remain binding on both parties. Franchisees should carefully review these sections to understand their responsibilities and restrictions should the franchise agreement end.