Does C12 Group allow non-operating ownership of a C12 Group franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, in its discretion, permit third-party investors, silent equity positions, and non-operating ownership of Franchisee when all proposed parties and agreements are reviewed and approved by Franchisor.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group may permit non-operating ownership of a franchise under certain conditions. Specifically, C12 Group may, in its discretion, allow third-party investors, silent equity positions, and non-operating ownership of Franchisee when all proposed parties and agreements are reviewed and approved by C12 Group.
For a prospective franchisee, this means that while it may be possible to have investors or silent partners who are not involved in the day-to-day operations of the C12 Group franchise, this is not guaranteed. C12 Group retains the right to approve or disapprove such arrangements. All parties and agreements must undergo a review process by C12 Group.
It is important for potential franchisees to discuss this in detail with C12 Group during their due diligence to understand the specific requirements and approval processes for non-operating ownership. This ensures that any planned investment structure aligns with C12 Group's policies and that all necessary approvals can be obtained.