What are the specific deadlines and procedures for renewing the franchise agreement with C12 Group, considering the franchisee's obligations outlined in Item 9?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
provided that you follow the same exceptions and restrictions above.
The Franchise Agreement is automatically renewed on a year-to-year basis until (1) either you give C12 a notice to discontinue at least 90 days prior to the end of the then-current term, or C12 gives you a notice to discontinue at least 90 days prior to the end of the then-current term, (2) either party should breach its terms or conditions, or (3) franchisee fails to consent to any updates or changes in the C12 business model and Operations Manual which may have occurred during the prior year by signing a Franchise Compliance Administrative Update letter each year. Compliance with the Field Operations Manual will be understood to include the Brand Standards, mandatory elements of the Meeting Playbook and One-on- One Playbook, and any standard components of the C12 member experience put forth by the C12 Group, LLC.
Except as specifically stated herein, we cannot engage in activities in your Territory that are competitive with your franchise. Nor can we operate, plan to operate, or franchise any businesses under a different trademark that will sell similar goods or services to those of this franchise in your Territory.
We have no right to solicit business for ourselves within your Territory that is competitive with your franchise, whether through alternative channels of distribution, whether via the Internet, catalogs, telemarketing, or otherwise.
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreement is automatically renewed on a year-to-year basis under certain conditions. The initial term of the agreement extends through December 31st of the year following the agreement's execution. For instance, an agreement executed on May 31, 2024, would expire on December 31, 2025.
For renewal to occur, both C12 Group and the franchisee must agree to the renewal. The franchisee must remain active in operating the franchised business and be in good standing, which includes compliance with the agreement's terms and any updates to C12 Group's business model and Operations Manual. Franchisees indicate their agreement to these updates by signing a Franchise Compliance Administrative Update letter each year.
The FDD states that either party can prevent renewal by providing a notice to discontinue at least 90 days prior to the end of the current term. Additionally, failure to comply with the terms of the agreement or to consent to updates in C12 Group's business model can also prevent renewal. There is no additional renewal fee associated with these annual renewals. C12 Group will notify franchisees of material changes to Royalty Fees and minimum membership fees (used to calculate Royalty Fees) at least twelve months before the term's expiration.