Does the text mention any specific contract non-solicitation clauses related to C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreement includes a clause regarding the non-solicitation of members. Specifically, franchisees are prohibited from purposely soliciting prospective C12 members who live and work within another franchisee's territory. C12 Group considers such 'poaching' a material breach of the agreement, potentially leading to termination of the franchise agreement.
However, the policy allows for a member to transfer to a different C12 Group franchise if the member initiates the request. In this case, the franchisee must allow the member to attend a meeting in the other group, assuming there is space available. This policy is designed to serve the best interests of the members and is considered the best policy for C12 Group franchisees.
In the event a member transfers to another C12 Group franchise under these conditions, neither the original franchisee nor the receiving franchisee will receive any compensation as a result of the transfer. This ensures that the focus remains on serving the member's needs rather than financial incentives for transferring members between territories.