Besides the transfer fee, what financial obligations must be satisfied for a C12 Group franchise transfer?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ransfer 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 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, a franchisee looking to transfer their franchise must meet specific financial obligations beyond just the transfer fee. The C12 Group requires that all outstanding amounts owed by the franchisee to the company must be paid in full before the transfer can be approved. This includes any unpaid royalty fees, late fees, or other charges that the franchisee may owe to C12 Group.
This requirement ensures that C12 Group does not transfer a franchise to a new owner while the previous owner still has outstanding debts. For a prospective buyer, this means they should confirm with both the franchisee and C12 Group that all financial obligations have been satisfied before completing the purchase.
In addition to settling outstanding debts and paying the $6,000 transfer fee, the franchisee (and its owners, if applicable) must execute a general release of C12 Group, and a new franchise agreement must be signed with the transferee if more than fifty percent (50%) of the franchised business is transferred. The transferee must also be deemed qualified to serve by C12 Group in its sole discretion.