Is the 30-day cure period for C12 Group franchisees subject to state law?

According to C12 Group's 2025 Franchise Disclosure Document, the standard 30-day cure period that C12 Group provides to franchisees to correct a default in their obligations is subject to state law. This means that the specific rights and obligations of both C12 Group and the franchisee during this cure period can be modified or superseded by franchise laws in certain states. For example, the Minnesota Addendum specifies that Minnesota law requires a 90-day notice of termination with 60 days to cure, superseding the standard 30-day period in the C12 Group franchise agreement for franchises governed by Minnesota law. Similarly, the Washington Addendum indicates that the Washington Franchise Investment Protection Act may supersede the franchise agreement regarding termination and renewal.

This stipulation is important for prospective C12 Group franchisees because it highlights that the franchise agreement is not a one-size-fits-all document. The specific terms regarding termination and cure periods can vary significantly depending on the state in which the franchise operates. Franchisees need to be aware of the franchise laws in their state and how those laws interact with the terms of the C12 Group franchise agreement. This ensures that they understand their rights and obligations in the event of a default.

Furthermore, the FDD includes addenda for specific states like North Dakota, Washington and Minnesota, which modify certain provisions of the franchise agreement to comply with state laws. These addenda demonstrate that C12 Group acknowledges and accommodates the varying legal requirements across different states. A prospective franchisee should carefully review any state-specific addenda included in their franchise agreement to understand how the standard terms are modified in their particular state. They should also consult with an attorney experienced in franchise law to ensure they fully understand their rights and obligations under both the franchise agreement and applicable state laws.

In summary, while C12 Group's franchise agreement generally provides a 30-day cure period, franchisees must recognize that this period, and other termination-related terms, are subject to state laws that may provide different or additional protections. Reviewing state-specific addenda and seeking legal counsel are crucial steps in understanding the full scope of the franchise relationship and ensuring compliance with all applicable regulations.