Besides the transfer fee, what other conditions might the C12 Group place on its consent to a franchise transfer?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
eree, as applicable, executing Franchisor's then-current form of franchise agreement, which may contain terms materially different than the Franchise Agreement. Franchisor may condition its consent to any transfer based on the evaluation of successor or transferee qualifications, business plan viability (including recognition of Franchise purchase terms), the transferee's successful completion of New Chair Training and payment of a $6,000 transfer fee. In addition, if the transferee acquiring the entire Franchised Business is not an existing C12 franchisee, they must pay Franchisor a training fee. The transfer is deemed approved only after the transferee has been deemed qualified to serve by Franchisor in its sole discretion, the transfer fee of $6,000 has been paid to Franchisor, all outstanding amounts owed by Franchisee to Franchisor have been paid in full, Franchisee (and its owners, if applicable) has executed a general re
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the franchisor has the right to approve all sales and transfers of the franchised business or any interest in the franchisee if the franchisee is an entity. A transfer is considered to occur when more than 50% of the equity ownership is sold or transferred to a third party. In addition to a $6,000 transfer fee, C12 Group may place other conditions on its consent to a transfer.
These conditions include evaluating the successor or transferee's qualifications and the viability of their business plan, including recognition of franchise purchase terms. The transferee must also successfully complete New Chair Training. If the transferee is not an existing C12 Group franchisee, they must pay a training fee to C12 Group.
The transfer is only deemed approved after the transferee is qualified to serve, the transfer fee is paid, all outstanding amounts owed by the franchisee to C12 Group are paid in full, the franchisee executes a general release of C12 Group, and a new franchise agreement is signed with the transferee if more than 50% of the franchised business is transferred. These conditions ensure that the new franchisee meets C12 Group's standards and that all financial obligations are settled before the transfer is finalized.