Does the text mention any default conditions for C12 Group contracts?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Minimum Performance Standards. Franchisee must achieve a minimum level of target market penetration to maintain exclusivity within Territory. Franchisor defines Franchisee's "Baseline Target" using publicly available data, including, without limitation, the relevant Intelligent Direct, Inc (IDI) dba GbBIS business census in the Territory and research data provided by The Barna Group on the percentage of 'practicing Christians' or 'evangelical Christians' by region to establish the market potential in regard to the number of prospective member companies within the Territory. Franchisee must achieve the minimum performance levels set forth in Section IV.8.a. to maintain exclusivity within the Territory. If Franchisee fails to achieve such minimum performance levels, Franchisor may reduce the size of Franchisee's Territory, authorize another franchisee to operate a C12 Group franchise within Franchisee's Territory, or operate a C12 Group business within Franchisee's Territory.
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- Trade Name and Marks. Franchisor owns certain trademarks, service marks, trade names, logotypes, internet domain names, commercial symbols, copyrighted materials, and proprietary processes and materials which Franchisee is licensed to use.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee can face consequences for failing to meet minimum performance standards. To maintain exclusivity within their territory, a C12 Group franchisee must achieve a certain level of market penetration, which C12 Group determines using data from sources like the Intelligent Direct, Inc (IDI) dba GbBIS business census and The Barna Group. These sources help C12 Group estimate the number of prospective member companies within the territory based on the percentage of 'practicing Christians' or 'evangelical Christians' in the region.
If a C12 Group franchisee fails to meet these minimum performance levels, C12 Group has the right to take corrective actions. These actions can include reducing the size of the franchisee's territory, authorizing another franchisee to operate within the original franchisee's territory, or even operating a C12 Group business directly within that territory.
Additionally, the FDD states that 'poaching' or soliciting prospective C12 members who live and work in another franchisee's territory is considered a material breach of the agreement. This breach can lead to termination of the agreement upon notice to the franchisee, highlighting the importance C12 Group places on maintaining the unity of its franchise system.