Is the choice of law for C12 Group franchises subject to any exceptions?
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). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the choice of law is subject to exceptions. While Texas law generally governs franchise agreements, this is explicitly stated to be "subject to applicable state law." This means that if a state's laws conflict with the application of Texas law, the state law will take precedence.
This is a fairly standard clause in franchise agreements, as franchisors must comply with the laws of each state in which they operate. The FDD also notes that the choice of forum for litigation, which is generally Texas, is similarly subject to exceptions based on state disclosures and applicable state law.
Prospective C12 Group franchisees should carefully review Exhibit F of the FDD, as it contains specific state disclosures that may affect the choice of law and forum. They should also consult with an attorney to understand how the laws of their state may impact their franchise agreement with C12 Group.