After termination, what geographic areas are covered by the non-competition agreement for C12 Group franchisees?

According to the 2025 C12 Group Franchise Disclosure Document, for two years after the termination of the Franchise Agreement, a franchisee cannot own an interest in, be employed by, or be engaged with a Competitive Business within specific geographic boundaries. A Competitive Business is defined as any business that offers peer mentorship and coaching to Christian business leaders.

The non-compete area includes the franchisee's Territory, an area within ten miles of the Territory, the territory of any other C12 Group franchise, and an area within ten miles of any other C12 Group franchise territory. This means a former franchisee is restricted from operating a similar business not only in their own designated area but also in neighboring areas and other C12 Group franchise locations.

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 continue in a competitive business without adhering to the geographic restrictions, provided they pay the specified fee. This type of non-compete agreement is common in franchising to protect the brand and market share of the franchisor and other franchisees.