factual

Is there a requirement for the Principal Chair of a C12 Group franchise to be fully trained?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

GATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS**

The Principal Chair must be actively involved in the day-to-day operation of your franchise as a fullytrained Principal Chair (FA Sections IV, XVIII) and pursue effective stewardship in addressing the full market potential available in your assigned Territory as You serve local Christian business owners, CEOs, and presidents. Although it is possible to engage other qualified and fully-trained personnel in serving your Territory's demand as a part of your C12 practice (FA Sections I, IV, IX), you must remain active in the role of Principal Chair to retain the franchise. If the franchise is owned by an entity (e.g., a corporation, limited liability company, or partnership), then the franchise must be operated by someone who is an owner and officer of such an entity (a "Principal") and who has met all the on-going requirements of a fullytrained C12 Principal Chair (FA Sections X, XVIII). If circumstances should ever change such that such Principal is no longer both an owner and officer of such entity and such entity does not have a suitable replacement candidate for the role of C12 Principal Chair (contingent on C12's approval), then the franchise must be operated by the Principal Chair, or, failing that, transferred to C12 (at C12's option), an approved third-party (at C12's discretion), or terminated (FA Sections VIII, X).

C12 permits third party investors, silent equity positions, and non-operating ownership of a C12 franchise when all parties and agreements are reviewed and approved by C12. A non-operating ownership entity may designate a Principal Chair to operate the franchise and lead teams of Area Chairs as long as agreements and assignments are approved by C12 in writing. This includes the stipulation that C12 must approve and train all subsequent Area Chairs (whether designated as Principal Chairs by responsibility or not). The allowance is to both support capitalizing franchise launches as well as succession and liquidation of franchisees upon exit scenarios.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)

What This Means (2025 FDD)

According to the 2025 C12 Group FDD, the Principal Chair must be actively involved in the day-to-day operations of the franchise and must be a fully trained Principal Chair. If the franchise is owned by an entity, the franchise must be operated by someone who is an owner and officer of that entity, and who meets all the ongoing requirements of a fully trained C12 Group Principal Chair.

C12 Group requires that all subsequent Area Chairs are approved and trained, whether designated as Principal Chairs or not. This requirement supports capitalizing franchise launches, succession planning, and franchisee liquidation upon exit scenarios. Even non-operating ownership entities must coordinate with and submit to C12 Group's approval for the selection, training, and installment of any Principal Chair for the franchise.

Before commencing operations, C12 Group franchisees must complete a mandatory five-week training program called "New Chair Training." This includes four weeks of guided self-study combined with weekly live webinar training with a C12 Chair Trainer, followed by a one-week on-site training at C12 Group's Headquarters in San Antonio, TX. By the conclusion of Training Week, C12 Group will determine whether the franchisee has sufficiently demonstrated the ability to launch and successfully operate a C12 Group Franchised Business. Franchisees must also attend the Sales Training Series that C12 Group hosts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.