During the term of the franchise, what specific activities are prohibited for a C12 Group franchisee regarding competitive businesses?

According to the 2025 C12 Group Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is prohibited from owning an interest in or participating in any business that is viewed as competitive, injurious, or incompatible with C12 Group and the franchised business. Additionally, the franchisee is expected to engage in the C12 Group franchised business as their primary vocation, ensuring that no other vocational interests materially impair their ability to fulfill their obligations under the franchise agreement. This restriction is in place to protect the C12 Group's market position and ensure the franchisee's full dedication to the business.

This non-compete clause means a prospective franchisee must be fully committed to C12 Group and not have conflicting business interests. This commitment ensures that the franchisee's efforts are entirely focused on growing the C12 Group business within their territory. The restriction aims to prevent franchisees from diverting resources or attention to other ventures that could potentially undermine the C12 Group's success.

These types of restrictions are common in franchising to protect the brand and maintain consistency across the franchise system. Franchisees should carefully consider these restrictions and ensure they are willing to fully dedicate themselves to the C12 Group business before entering into the agreement. It is important to evaluate any existing business interests and determine whether they could be viewed as competitive or create a conflict of interest.