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

According to C12 Group's 2025 Franchise Disclosure Document, a franchisee is subject to a post-termination non-competition covenant for two years after the franchise agreement ends, regardless of the reason for termination. This prevents the franchisee from owning an interest in, being employed by, or engaged with a Competitive Business within their territory, within ten miles of their territory, within any other C12 franchise territory, or within ten miles of any other C12 franchise territory. A Competitive Business is defined as one that offers peer mentorship and coaching to Christian business leaders.

However, the FDD states that a C12 Group franchisee can avoid these post-termination non-competition obligations if they pay C12 Group the Exit Fee.

This condition is important for prospective franchisees to consider, as the Exit Fee could represent a significant cost if they wish to continue in a similar business after leaving the C12 Group system. Franchisees should carefully evaluate the potential financial implications of this clause and factor it into their business planning.