Does C12 Group allow individuals with pending felony allegations to become franchisees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion, or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
The 2025 C12 Group Franchise Disclosure Document (FDD) addresses administrative, criminal, and civil actions pending against the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the C12 Group trademark. Specifically, it states that no such party should have a pending action alleging a felony, among other violations. This disclosure pertains to the franchisor and related parties, not directly to prospective franchisees. Therefore, the FDD does not explicitly state whether C12 Group would allow an individual with pending felony allegations to become a franchisee.
While the FDD outlines conditions under which the franchisor or related parties might be involved in legal actions, it does not provide specific criteria for franchisee eligibility concerning pending felony allegations. The document focuses on the legal standing and history of the franchisor and its key personnel, ensuring they have not been involved in significant legal issues that could impact the franchise system.
Therefore, it remains unclear from the provided excerpts whether C12 Group has specific policies regarding prospective franchisees with pending felony allegations. A potential franchisee should directly inquire with C12 Group about their specific policies and requirements related to criminal background checks and pending legal issues during the application process.