What was the case number for the administrative proceeding involving The C12 Group, LLC before the Securities Commissioner of Maryland?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
In the Matter of The C12 Group, LLC, Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2011-0530. In responding to inquiries from the Maryland Securities Division as a result of an investigation into the franchise related activities of The C12 Group, LLC ("C12"), the Maryland Securities Commissioner ("Commissioner") concluded that grounds exist to allege that C12 violated the registration, disclosure and antifraud provisions of the Maryland Franchise Law and an Escrow Order of the Commissioner, in relation to the offer and sale of a C12 franchise. C12 disclosed that it sold a franchise in Maryland during a time it was not registered to offer and sell franchises in Maryland and that it did not deposit any initial fees paid by the franchisee into escrow account as required pursuant to a 2009 Escrow Order of the Commissioner. On May 15, 2012, the Commissioner and C12 agreed to enter into a consent order whereby C12, without admitting or denying any violations of law, agreed to: immediately and permanently cease from the offer and sale of franchises in violation of the Maryland Franchise Law; promptly file and diligently pursue an application for franchise registration in Maryland; and offer rescission to the franchisee who was sold a franchise in Maryland in violation of the Maryland Franchise Law.
Source: Item 3 — LITIGATION (FDD page 11)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the administrative proceeding before the Securities Commissioner of Maryland involving The C12 Group, LLC was Case No. 2011-0530. The case arose from an investigation into C12 Group's franchise-related activities in Maryland. The Commissioner alleged that C12 Group violated registration, disclosure, and antifraud provisions of Maryland Franchise Law, as well as a 2009 Escrow Order.
The specific issues involved C12 Group selling a franchise in Maryland while not registered to do so and failing to deposit the initial franchise fees into an escrow account as required by the Commissioner's order. To resolve the matter, on May 15, 2012, C12 Group and the Commissioner entered into a consent order.
Under the consent order, C12 Group agreed to immediately and permanently cease offering or selling franchises in Maryland in violation of the Maryland Franchise Law. They also agreed to promptly apply for franchise registration in Maryland and offer rescission to the franchisee who had been sold a franchise in violation of the law. C12 Group did not admit or deny any violations as part of the agreement. This information is important for prospective franchisees as it shows a history of regulatory issues in Maryland and the steps C12 Group took to resolve them.