What sections of the C12 Group agreement outline the franchisee's post-termination obligations?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
IX. Covenants
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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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- Obligations Upon Termination. Upon termination of this Agreement for any reason, Franchisee shall perform the following:
a. Franchisee shall immediately cease using all programs, process formats, materials, forms, manuals, systems, slogans, signs, marks, symbols, websites, or designs used with the C12 Franchised Business and return all manuals and member information to Franchisor.
b. Franchisee shall pay Franchisor all past-due amounts plus late fees and interest as applicable.
c. Franchisee shall maintain the confidentiality of all C12 proprietary material or confidential business process or member information related to Franchisee's prior C12 Franchised Business as required by Section IV.8.c. of this Agreement.
d. Franchisee shall follow the post-termination process for communicating the termination of this Agreement with Franchisee's C12 members as outlined in Section IV.8.c. of this Agreement.
Franchisee will, upon termination of this Agreement, without limiting any other obligations under this Agreement, return or destroy all unused C12 materials and provide Franchisor with all member contact information.
XVII. Survival
All provisions of this Agreement which impose an obligation after termination of this Agreement shall survive termination of this Agreement and be binding on the parties.
Franchisee shall hold all materials, practices, customer lists, contact lists, and any other proprietary information concerning Franchisor, the C12 brand, and C12 members confidential, and to return to Franchisor or destroy all such materials if this Agreement is terminated for any reason.
Upon the termination of this Agreement, the following shall apply: (a) all members in Franchisee's Territory must be notified of Franchisee's decision to leave C12 and they must be informed of their option to continue participating in CEO Forums and Key Player Forums led by a subsequent Area Chair to be appointed by Franchisor (Franchisor will formally present this option to the members, either collectively or individually); (b) members will be free to either remain C12 members or to make alternative CEO roundtable arrangements once they have been informed of their options; (c) Franchisee shall conduct itself in any such transition so that the best interests of the group members are served and that Kingdom unity and fellowship are preserved; and (d) Franchisee shall cease using all C12 materials, trade names and marks, and implying any association with C12.
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 the franchisee's obligations after termination. Section IX addresses covenants, including a post-termination non-competition clause. For two years after termination, the franchisee cannot own an interest in or be employed by a competitive business within their territory, within ten miles of their territory, or within ten miles of any other C12 Group franchise territory. A "Competitive Business" is defined as one offering peer mentorship and coaching to Christian business leaders. This non-compete can be waived if the franchisee pays an Exit Fee to C12 Group.
Section X covers obligations upon termination, requiring the franchisee to immediately cease using all C12 Group programs, materials, and systems, and to return all manuals and member information. The franchisee must also pay all past-due amounts, including late fees and interest. Maintaining the confidentiality of C12 Group's proprietary material, business processes, and member information is also required, as outlined in Section IV.8.c. The franchisee must also follow a specific post-termination process for communicating the termination to their C12 Group members, also detailed in Section IV.8.c.
Additionally, the agreement states that upon termination, the franchisee must return or destroy all unused C12 Group materials and provide C12 Group with all member contact information. Section XVII states that all provisions of the agreement that impose an obligation after termination of the agreement shall survive termination of this agreement and be binding on the parties. The franchisee is also obligated to conduct themselves in any transition after termination so that the best interests of the group members are served and that Kingdom unity and fellowship are preserved. The franchisee must cease using all C12 Group materials, trade names and marks, and implying any association with C12 Group.