What sections of the C12 Group agreement outline the franchisee's obligations regarding territorial development and sales quotas?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
for the first C12 introductory event and/or initial CEO Forum in the Territory, and (v) reporting to Franchisor and making progress regarding the specific Business Plan Goals and Action Plan Goals that Franchisee established with Franchisor during Training Week.
You will have a specific exclusive Territory, which is defined mutually by C12 and you and should be incorporated in your business plan development in conjunction with C12.
Once you have achieved two full Business Forums, you may also request an expansion of your Territory based on a proposed business plan. C12 must review and approve any such plan before it is pursued.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
Based on the 2025 C12 Group Franchise Disclosure Document, Item 22, which covers the franchise agreements, mentions that franchisees must report to the franchisor and make progress regarding specific Business Plan Goals and Action Plan Goals established with the franchisor during Training Week. This suggests that the franchisee's obligations regarding territorial development and sales quotas are likely detailed within the business plan and action plan created during the training period. These plans appear to be central to defining the franchisee's expected performance and growth within their exclusive territory.
Item 12 of the FDD states that the franchisee will have a specific exclusive Territory, which is defined mutually by C12 and the franchisee and should be incorporated in the business plan development in conjunction with C12. Furthermore, once a franchisee has achieved two full Business Forums, they may request an expansion of their Territory based on a proposed business plan, which C12 must review and approve. This indicates that territorial development is tied to meeting certain milestones (two full Business Forums) and requires the franchisor's approval of a business plan outlining the proposed expansion.
To fully understand the franchisee's obligations regarding territorial development and sales quotas, a prospective franchisee should carefully review Item 22 of the Franchise Disclosure Document, focusing on the sections detailing the Franchise Agreement and the process for establishing Business Plan Goals and Action Plan Goals. Additionally, they should inquire about the specific metrics and expectations included in these plans during the training week. Understanding the criteria for territory expansion, as outlined in Item 12 and the associated business plan requirements, is also crucial for assessing growth opportunities and obligations.