How does C12 Group assess the 'nature' of the franchise system when evaluating pending litigation?

According to the 2025 FDD, C12 Group assesses pending litigation against the company by considering the size, nature, or financial condition of the franchise system or its business operations. Specifically, C12 Group does not have 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.

This means that C12 Group evaluates whether any pending lawsuits could materially impact the franchise system as a whole. This evaluation includes considering the number of franchisees, the overall financial health of C12 Group, and the general operations of the business.

For a prospective franchisee, this indicates that C12 Group aims to ensure that any legal issues are managed in a way that does not pose a significant risk to the entire franchise network. It is important to note that this assessment focuses on the significance of the litigation in the context of the entire system, rather than the individual merits of each case.