After termination or expiration of the C12 Group franchise, for how long does the non-competition covenant apply?

According to the 2025 C12 Group Franchise Disclosure Document, a franchisee is subject to a post-termination non-competition covenant for two years after the franchise agreement ends, regardless of the reason for termination. This restriction prevents the franchisee from owning, being employed by, or being involved with a business that competes with C12 Group.

The non-compete area includes the franchisee's territory, areas within ten miles of that territory, the territory of any other C12 Group franchise, and areas within ten miles of any other C12 Group franchise. A "Competitive Business" is defined as one that offers peer mentorship and coaching to Christian business leaders.

However, the post-termination non-competition obligations do not apply if the franchisee pays C12 Group the Exit Fee. This provides an option for franchisees who wish to immediately engage in a competitive business after leaving the C12 Group system. Prospective franchisees should carefully consider the implications of this non-compete agreement and the potential costs associated with the Exit Fee if they plan to operate a similar business after their C12 Group franchise.