What are the specific obligations of a C12 Group franchisee regarding the maintenance and security of customer data, considering the franchisor's assistance with computer systems in Item 11?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ith the C12 Brand Standards Guide. Franchisee shall not solicit Franchisee's C12 members for the purpose of selling them other products or services. Franchisee shall maintain current information on Franchisor's website(s) regarding Franchisee, Franchisee's local group meeting locations and times, local C12 events and news, and provide every C12 member an opportunity to participate in any global C12 web functionality (e.g., search for other members, benchmarking, bulletin board/blog functions, etc.).
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- Specific Operational Obligations. Franchisee shall adhere to and comply with Franchisor's basic business model and its various standard processes, due dates, and payments, as they may be revised from time to time in Franchisor's sole discretion. Currently, these obligations of Franchisee include the
following:
- a. Franchisee shall submit a monthly Area Chair Activity and Payment Report via the reporting system to Franchisor by the fifth (5th) business day of each month for the preceding month's activity. Franchisee shall pay Franchisor a late fee of $100 each time this report is late. Any unpaid Royalty Fees past-due greater than thirty (30) days will be subject to a monthly compounded interest rate of 1.5% or the maximum interest rate allowed by law.
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, C12 Group franchisees have some obligations related to data, but the document does not explicitly detail specific data maintenance and security protocols. However, the FDD does state that upon termination of the agreement, the franchisee must maintain the confidentiality of all C12 proprietary material, confidential business processes, and member information related to the franchisee's prior C12 Group franchised business.
While C12 Group provides franchisees with a localized website and email address, and maintains the C12 App and CRM, the FDD states that C12 Group will not have independent access to franchisees' computer data and information. Franchisees are required to maintain current information on C12 Group's websites regarding themselves, their local group meeting locations and times, and local C12 events and news. They must also provide every C12 member an opportunity to participate in any global C12 web functionality.
Prospective franchisees should inquire with C12 Group about the specific data security measures they are expected to implement to protect member information, both during the franchise term and after termination. It would be prudent to understand what standards or protocols C12 Group recommends or requires regarding data encryption, access controls, and data breach response plans.