Who must approve the buyer of a C12 Group franchise in the event of the franchisee's death or disability?
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). |
| C12 Franchisees | ||
| Total Revenue | ||
| January 1, 2024 to December 31, 2024 | ||
| Total Revenue | $44,250,036 | Reported by 65 franchisees. |
| m. Conditions for franchisor approval of transfer | X | New franchisee qualifies, transfer fee of $6,000 paid, purchase agreement approved, training completed, all outstanding accounts receivable satisfied, release signed by you and current agreement signed by new franchisee (also see r. below). |
| n. Franchisor's right of | Not Applicable | C12 does not require right of first refusal, but must |
| first refusal to acquire | approve owner/operator and may, on occasion, take | |
| franchisee's business | ownership if necessary. | |
| o. Franchisor's option to purchase franchisee's business | X | If you ask C12 to purchase your business or you have not actively tended to the Territory for 60 days or more, C12 has the right to purchase or, in certain instances, regain the rights to the Territory at no cost. Subject to state law. |
| p. Death or disability of franchisee | X | Franchise must be assigned by estate to a C12- approved buyer within six months of your involuntary physical departure from the practice to qualify as a transfer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, in the event of a franchisee's death or disability, the estate must assign the franchise to a buyer approved by C12 Group within six months. This requirement ensures that any new franchisee meets C12 Group's standards and can maintain the quality and consistency of the services provided.
This condition is important for prospective franchisees to understand, as it dictates the process for transferring the franchise in unforeseen circumstances. The necessity of C12 Group's approval ensures that the new owner is qualified and capable of running the franchise effectively, protecting the brand's reputation and the interests of other franchisees.
This requirement is fairly standard in the franchise industry, as franchisors typically want to maintain control over who operates under their brand name. It is crucial for potential C12 Group franchisees to discuss this transfer process with the franchisor to fully understand the criteria for buyer approval and any associated costs or requirements.