What standards must a non-operating ownership entity comply with in a C12 Group franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
A non-operating ownership entity must comply with the moral and spiritual integrity standards associated with a Principal Chair within the community and not engage in any competing, conflict of interest, or predatory business interests. Any non-operating ownership entity must still coordinate with and submit to C12 Group's ultimate approval of the selection, training, and installment of any Principal Chair for the franchise.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a non-operating ownership entity must adhere to specific standards to maintain its franchise. These standards include upholding moral and spiritual integrity within the community, aligning with the values expected of a Principal Chair. The entity must also avoid engaging in any business activities that compete with, create a conflict of interest with, or are predatory towards C12 Group.
Furthermore, while the non-operating entity does not handle day-to-day operations, it must still collaborate with C12 Group in the selection, training, and installment of any Principal Chair for the franchise. C12 Group retains the right to give final approval for the appointment of the Principal Chair.
C12 Group also permits third-party investors, silent equity positions, and non-operating ownership of a C12 Group franchise when all parties and agreements are reviewed and approved by C12 Group. A non-operating ownership entity may designate a Principal Chair to operate the franchise and lead teams of Area Chairs as long as agreements and assignments are approved by C12 Group in writing. This includes the stipulation that C12 Group must approve and train all subsequent Area Chairs (whether designated as Principal Chairs by responsibility or not).