factual

After termination or expiration of the C12 Group franchise, what are the geographic limits of the non-competition covenant?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. Post-Termination Non-Competition. For two (2) years after the termination of this Agreement for any reason, Franchisee shall not directly or indirectly own an interest in or otherwise be employed by or engaged with a Competitive Business within the Territory, within ten (10) miles of the Territory, within the territory of any other C12 franchise, or within ten (10) miles of the territory of any other C12 franchise. For purposes of this Section, a "Competitive Business" is any business that offers peer mentorship and coaching to Christian business leaders. The post-termination non-competition obligations under this Section shall not apply if Franchisee pays Franchisor the Exit Fee described above.

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, a franchisee is subject to a post-termination non-competition covenant. For a period of two years after the termination of the Franchise Agreement, the franchisee cannot own an interest in, be employed by, or be engaged with a business that offers peer mentorship and coaching to Christian business leaders, which is considered a "Competitive Business".

The geographic scope of this restriction includes the franchisee's territory, within ten miles of that territory, within the territory of any other C12 Group franchise, and within ten miles of any other C12 Group franchise's territory. This means that the non-compete extends not only to the franchisee's immediate area but also to a buffer zone around it and around all other C12 Group locations.

However, this post-termination non-competition obligation does not apply if the franchisee pays C12 Group the Exit Fee. Prospective franchisees should carefully consider the implications of this non-compete and the cost of the Exit Fee when evaluating the C12 Group franchise opportunity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.