factual

Does C12 Group allow silent equity positions in a C12 Group franchise?

C12_Group Franchise · 2025 FDD

Answer 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 C12 Group's 2025 Franchise Disclosure Document, C12 Group may permit third-party investors, silent equity positions, and non-operating ownership of a franchise. However, this is contingent upon C12 Group reviewing and approving all proposed parties and agreements.

For a prospective franchisee, this means that while it may be possible to have silent investors or non-operating owners in your C12 Group franchise, it is not guaranteed. C12 Group retains the right to approve or disapprove any such arrangements. This approval process likely involves a thorough review of the investors, their financial capabilities, and the terms of the investment agreement to ensure they align with C12 Group's standards and policies.

This policy provides flexibility for franchisees who may need external funding or wish to structure their ownership in a specific way. However, it also introduces a layer of uncertainty, as the franchisee must obtain C12 Group's consent. Therefore, it is crucial to discuss any potential investor arrangements with C12 Group early in the franchise process to avoid potential complications or delays.

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.