Does the text mention any specific contract covenants related to C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
rocess for communicating the termination of this Agreement with Franchisee's C12 members as outlined in Section IV.8.c. of this Agreement.
IX. Covenants
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- During the Term. Franchisee agrees to not own an interest or participate in any business viewed as competitive, injurious, or incompatible with Franchisor and the C12 Franchised Business. Franchisee agrees to engage in the C12 Franchised Business as Franchisee's primary vocation with no other vocational interests that may materially adversely impair Franchisee's ability to perform Franchisee's obligations hereunder.
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- 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.
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- Non-Solicitation of Members. Franchisee agrees to not purposely solicit (either directly or indirectly) any prospective C12 member who lives and works in the territory of another C12 franchisee. Such 'poaching' is deemed by C12 to be a material breach of this Agreement that strikes at the unity of the C12 franchise system and is grounds for termination upon notice to Franchisee. If one of Franchisee's C12 members desires, for any reason, to consider becoming a member of a Business Forum in another C12 franchisee's territory and personally initiates a request to transfer their membership to another group, Franchisee shall enable the member to attend a full meeting in the other group (presuming room exists for their potential membership) before they reach a final decision. This C12 policy is aimed at serving the best
interests of each member and is ultimately deemed as the best policy for C12 franchisees. In such a scenario, Franchisee agrees that there will be no compensation to either Franchisee or the other C12 franchisee as a result of a member choosing to make such a transfer.
X. Transfer, Sale, or Assignment
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- Recognizing the value of consistency and standardization across franchisees in fostering the goodwill and reputation of the C12 franchise system and Franchisor and the desire for service continuity to C12 members within Franchisee's Territory, Franchisor and Franchisee agree as follows:
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- Franchisor shall have the right to approve all sales and transfers of the Franchised Business or any interest in Franchisee if Franchisee is an entity.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group FDD, the Franchise Agreement includes specific covenants that franchisees must adhere to. During the term of the agreement, franchisees cannot own an interest in or participate in any business that is seen as competitive, injurious, or incompatible with C12 Group. Franchisees must also engage in the C12 Franchised Business as their primary vocation, without other vocational interests that could negatively impact their ability to fulfill their obligations under the agreement.
Post-termination, for two years after the agreement ends for any reason, franchisees are restricted from owning an interest in or being employed by a Competitive Business within their territory, within ten miles of their territory, within any other C12 franchise territory, or within ten miles of any other C12 franchise territory. A "Competitive Business" is defined as one that offers peer mentorship and coaching to Christian business leaders. This post-termination non-competition obligation can be waived if the franchisee pays C12 Group the Exit Fee.
Additionally, franchisees are prohibited from soliciting prospective C12 members who live and work in another franchisee's territory. Such "poaching" is considered a material breach of the agreement and can lead to termination. If a member wants to transfer to a group in another franchisee's territory and initiates the request, the franchisee must allow the member to attend a meeting in the other group before making a final decision. C12 Group also requires its Area Chairs to abide by a covenant of "above reproach" conduct, avoiding behaviors that could be questionable or cause members to stumble, including abstaining from the use of all smoking products.