factual

According to C12 Group, what principles should guide the resolution of disputes?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

hed a Chair Advisory council comprised of regional peer representatives selected for rotating terms to serve as advisors and advocates of franchisees to Franchisor. 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.

    1. 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.
    1. 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.

In any and all disputes arising with respect to the Agreement, if the laws of any state are to be applied thereto such laws shall be exclusively the laws of the State of Texas, without giving effect to provisions or procedures regarding conflicts of laws. Further, in the event that any dispute arising with respect to this Agreement is to be litigated, all parties hereby consent to the exclusive jurisdiction of the state court of Texas sitting in Bexar County, Texas.

**XIII.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to C12 Group's 2025 Franchise Disclosure Document, resolving disputes should follow a biblically faithful process. C12 Group outlines a multi-step approach to address conflicts between the franchisor and franchisee.

First, a franchisee can appeal to the Chair Advisory Council through their Regional Representative, which includes a delegate from C12 Group's Board of Directors and officers. If the dispute is not resolved, either party can bring the issue to a panel of three mutually selected C12 Group Board Members who are not part of the senior staff.

If the franchisee still disagrees with the panel's decision, they have the right to request binding Christian arbitration. This arbitration process is to be conducted according to the Christian Conciliation Rules of Procedure from the ICC booklet Guidelines for Christian Conciliation. C12 Group will cover all fees and expenses required by the mediator, case administrator, and/or arbitrator to encourage this process.

C12 Group membership is limited to Christian business Owners, CEOs, Presidents, and General Managers (and their team members) who agree to Christian conflict resolution. Each member agrees to group confidentiality, and being a part of an 'iron sharpening iron' peer group process that requires both listening and speaking in mutual ministry efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.