During the term of the C12 Group franchise, what non-competition covenants apply to the franchisee?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to not own an interest or participate in any business viewed as competitive, injurious, or incompatible with Franchisor and the C12 Franchised Business. Franchisee agrees to engage in the C12 Franchised Business as Franchisee's primary vocation with no other vocational interests that may materially adversely impair Franchisee's ability to perform Franchisee's obligations hereunder.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees are subject to certain non-competition covenants during the term of their Franchise Agreement. Specifically, a franchisee cannot own an interest in or participate in any business that is seen as competitive, injurious, or incompatible with C12 Group and the franchised business. This means a franchisee must avoid any business ventures that could potentially harm or compete with C12 Group's interests.
Furthermore, the C12 Group franchisee is expected to dedicate themselves primarily to the C12 Group franchised business. They are prohibited from engaging in other vocational interests that could materially and negatively impact their ability to fulfill their obligations under the Franchise Agreement. This requirement ensures that franchisees focus their efforts on growing and managing their C12 Group franchise effectively.
These restrictions are designed to protect C12 Group's market position and ensure that franchisees are fully committed to the success of their C12 Group business. Prospective franchisees should carefully consider these covenants to ensure they align with their existing business interests and career goals.