Under what circumstances can C12 Group regain the rights to a territory at no cost?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
C12 grants exclusive territory to the C12 Principal Chairs (franchisees). If you fail to meet minimum required levels of target market penetration (i.e., 33% of Baseline Target within 24 months and 50% within 36 months of becoming a franchisee with at least one (1) CEO Forum with at least ten (10) CEO Members within two years of opening the business should 33% of Baseline Target be less than ten (10) CEOs), C12 has the unilateral right to redefine exclusive and non-exclusive Territory definitions but will endeavor to jointly discuss and plan such changes in advance. Each franchisee's Baseline Target is established on a case-by-case basis. C12 also reserves the unilateral right to terminate a Franchise Agreement for nonperformance after a 90-day right to cure on the part of the franchisee. C12 reserves the right to require additional Baseline Target requirements after 36 months, including achieving greater than 100% of your original Baseline Target (see the example at the end of this Item 12), in order to ensure continued market growth and development. Your original Baseline Target only represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in your Territory. During the initial launch period, the franchisee will be responsible for demonstrating good faith development pursuits demonstrated by execution of the business plan crafted during New Chair Training or making at least eight new contacts per week until two CEO Forums are operating with more than six members each. C12 reserves the right to impose a cure process in subsequent months in the case of failure to demonstrate good faith development of a Territory.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group can redefine the exclusive and non-exclusive territory definitions if a franchisee fails to meet the minimum required levels of target market penetration. Specifically, this occurs if the franchisee does not achieve 33% of the Baseline Target within 24 months and 50% within 36 months of becoming a franchisee. A franchisee must also have at least one CEO Forum with at least ten CEO Members within two years of opening the business, should 33% of the Baseline Target be less than ten CEOs. C12 Group states that it will endeavor to jointly discuss and plan such changes in advance.
Each franchisee's Baseline Target is established on a case-by-case basis. The FDD specifies that the original Baseline Target only represents 10% of the estimated number of evangelical CEOs and senior business managers employed by companies in the franchisee's territory. During the initial launch period, the franchisee is responsible for demonstrating good faith development pursuits, such as executing the business plan crafted during New Chair Training or making at least eight new contacts per week until two CEO Forums are operating with more than six members each. C12 Group reserves the right to impose a cure process in subsequent months if the franchisee fails to demonstrate good faith development of the territory.
C12 Group also reserves the unilateral right to terminate a Franchise Agreement for nonperformance after a 90-day right to cure on the part of the franchisee. Additionally, C12 Group reserves the right to require additional Baseline Target requirements after 36 months, including achieving greater than 100% of the original Baseline Target, to ensure continued market growth and development. These performance standards are crucial for a franchisee to maintain exclusivity within their territory. If a franchisee fails to meet these minimum performance levels, C12 Group may reduce the size of the franchisee's territory, authorize another franchisee to operate within the original franchisee's territory, or operate a C12 Group business within the franchisee's territory.