Under what condition can a former C12 Group franchisee avoid the post-termination non-competition obligations?

According to the 2025 C12 Group Franchise Disclosure Document, a former franchisee can avoid the post-termination non-competition obligations if they pay C12 Group the Exit Fee.

The post-termination non-competition agreement states that for two years after the termination of the agreement, the franchisee cannot own an interest in, be employed by, or be engaged with a competitive business within their territory, within ten miles of their territory, within the territory of any other C12 Group franchise, or within ten miles of any other C12 Group franchise. A competitive business is defined as any business that offers peer mentorship and coaching to Christian business leaders.

This non-compete clause is fairly standard in franchising to protect the brand and system. However, the option to pay an exit fee to be released from this obligation provides some flexibility for former C12 Group franchisees who may wish to remain in the same or similar industry after leaving the franchise system. The FDD does not specify the amount of the Exit Fee, so prospective franchisees should inquire about this amount and factor it into their financial planning.