Under what conditions can the C12 Group terminate the agreement due to 'Failure to Launch'?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may terminate this Agreement or revise the territorial size and exclusivity under this Agreement in its sole discretion if, by the conclusion of the first ninety (90) days after executing this Agreement, Franchisee has not started building a CEO Forum as is demonstrated by Franchisee's diligence in performing the following duties: (i) making eight (8) Contacts per week on average; (ii) attending the mandatory Semi-Annual Chair Training sessions that occur during that period as well as the Sales Training Series; (iii) launching a direct marketing campaign; (iv) having a specific plan
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for the first C12 introductory event and/or initial CEO Forum in the Territory, and (v) reporting to Franchisor and making progress regarding the specific Business Plan Goals and Action Plan Goals that Franchisee established with Franchisor during Training Week.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, C12 Group has the right to terminate the franchise agreement if the franchisee fails to start building a CEO Forum within the first 90 days after the agreement is executed. This determination is based on the franchisee's diligence in performing specific duties. Alternatively, C12 Group can revise the territorial size and exclusivity granted in the agreement.
To avoid termination for failure to launch, a new C12 Group franchisee must demonstrate diligence by: making an average of eight contacts per week, attending mandatory Semi-Annual Chair Training sessions and the Sales Training Series, launching a direct marketing campaign, having a specific plan for the first C12 introductory event and/or initial CEO Forum in the Territory, and reporting progress on Business Plan Goals and Action Plan Goals established during Training Week.
This 'Failure to Launch' clause is important for prospective franchisees to understand. It sets clear expectations and performance benchmarks that must be met early in the franchise term. Failure to meet these benchmarks gives C12 Group the right to terminate the agreement or adjust the franchisee's territory, which could significantly impact the franchisee's investment and business plan.