Does the text mention any specific contract non-compete clauses related to C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, there are non-compete clauses both during the term of the agreement and post-termination. During the franchise term, the franchisee is prohibited from owning an interest in or participating in any business that is seen as competitive, injurious, or incompatible with C12 Group. The franchisee must also engage in the C12 Group franchised business as their primary vocation.
Post-termination, for a period of two years after the agreement ends for any reason, the franchisee cannot directly or indirectly own an interest in, be employed by, or be engaged with a Competitive Business within the Territory, within ten miles of the Territory, within the territory of any other C12 franchise, or within ten miles of the territory of any other C12 franchise. A "Competitive Business" is defined as any business 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 an Exit Fee. The franchisee also agrees not to solicit prospective C12 members who live and work in another franchisee's territory. This type of solicitation is considered a material breach of the agreement and can lead to termination.