According to the C12 Group FDD, what is the dispute resolution process?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| u. Dispute resolution by arbitration or mediation | XII, Exhibit F | All matters can be appealed up through C12’s defined three-step dispute resolution process which culminates in Christian arbitration pursuant to which the parties engage three Bible-believing Christian arbitrators as follows: one selected by the franchisee, one selected by C12, and one selected by such two arbitrators. The remedy recommended by the arbitration panel will be binding and final with no further recourse by either party. Subject to state law. | |---|---|---| | v. Choice of forum | XII, Exhibit F | Litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures (subject to applicable state law). | | w. Choice of Law | XII | Texas law will govern (subject to applicable state law). | Any franchisee may also appeal via their Regional Representative to bring matters of concern or dispute to the Chair Advisory Council which includes a delegate of the Franchisor's Board of Directors in addition to Franchisor's Officers.
Step Two: If the dispute remains unresolved, either Franchisor or Franchisee may bring the dispute to a panel of three of C12's Board Members, whom You will mutually select, that are not members of the Franchisor's senior staff.
Step Three: If Franchisee is still unwilling to abide by the decision of the panel of the three C12 non-executive Board Members, then Franchisee shall have the right to request binding Christian arbitration.
The parties agree for the arbitration process to be conducted in accordance with the Christian Conciliation Rules of Procedure contained in the ICC booklet Guidelines for Christian Conciliation.
In accordance with the Rules of Procedure for Christian Conciliation of the Institute for Christian Conciliation (complete text of the Rules is available at www.iccpeace.com/rules or by contacting ICC PEACE at info@iccpeace.com or calling 844-707-3223).
Consistent with these rules, each party to the agreement shall agree to the selection of the arbitrator.
The parties agree that if there is an impasse in the selection of the arbitrator, the Institute for Christian Conciliation (hereafter ICC), shall be asked to provide the name of a qualified person who will serve in that capacity.
Consistent with the Rules of Procedure, the arbitrator shall issue a written opinion within a reasonable time.
The parties acknowledge that the resolving of conflicts requires time and financial resources.
In an effort to fully encourage and implement a biblically faithful process, Franchisor agrees to pay all fees and expenses, which may be required by the mediator, case administrator, and/or arbitrator.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the dispute resolution process involves a three-step appeal process that culminates in Christian arbitration. All matters can be appealed through C12 Group's defined three-step dispute resolution process. This process involves engaging three Bible-believing Christian arbitrators: one selected by the franchisee, one by C12 Group, and one selected by the first two arbitrators. The remedy recommended by the arbitration panel is binding and final, with no further recourse for either party, subject to state law.
Specifically, any franchisee may appeal via their Regional Representative to bring concerns or disputes to the Chair Advisory Council, which includes a delegate of the Franchisor's Board of Directors and Franchisor's Officers. If the dispute remains unresolved, either C12 Group or the franchisee may bring the dispute to a panel of three mutually selected C12 Group Board Members who are not members of the Franchisor's senior staff.
If the franchisee is still unwilling to abide by the decision of the panel of three C12 Group non-executive Board Members, then the franchisee has the right to request binding Christian arbitration. The arbitration process is conducted in accordance with the Christian Conciliation Rules of Procedure contained in the ICC booklet Guidelines for Christian Conciliation. C12 Group agrees to pay all fees and expenses required by the mediator, case administrator, and/or arbitrator. Litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures, and Texas law will govern, subject to applicable state law.