What are the conditions for the estate to qualify the assignment as a transfer for a C12 Group franchise after the franchisee's death or disability?
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). |
| C12 Franchisees | ||
| Total Revenue | ||
| January 1, 2024 to December 31, 2024 | ||
| Total Revenue | $44,250,036 | Reported by 65 franchisees. |
| m. Conditions for franchisor approval of transfer | X | New franchisee qualifies, transfer fee of $6,000 paid, purchase agreement approved, training completed, all outstanding accounts receivable satisfied, release signed by you and current agreement signed by new franchisee (also see r. below). |
| n. Franchisor's right of | Not Applicable | C12 does not require right of first refusal, but must |
| first refusal to acquire | approve owner/operator and may, on occasion, take | |
| franchisee's business | ownership if necessary. | |
| o. Franchisor's option to purchase franchisee's business | X | If you ask C12 to purchase your business or you have not actively tended to the Territory for 60 days or more, C12 has the right to purchase or, in certain instances, regain the rights to the Territory at no cost. Subject to state law. |
| p. Death or disability of franchisee | X | Franchise must be assigned by estate to a C12- approved buyer within six months of your involuntary physical departure from the practice to qualify as a transfer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, if a franchisee dies or becomes disabled, their estate has a limited time frame to assign the franchise to a C12 Group-approved buyer in order for it to qualify as a transfer. Specifically, the estate must complete the assignment to a C12 Group-approved buyer within six months of the franchisee's involuntary physical departure from the practice due to death or disability.
This condition ensures that the C12 Group franchise continues to operate under an approved owner, maintaining the brand's standards and service quality. The requirement for C12 Group's approval of the buyer is consistent with franchise industry practices, where franchisors typically retain control over who enters their system to protect brand reputation and operational consistency.
For a prospective franchisee, this means that in the event of death or disability, their family or estate will need to act quickly to find a qualified buyer and obtain C12 Group's approval to ensure a smooth transfer of the franchise. Failure to do so within the six-month timeframe could result in the loss of the franchise, highlighting the importance of succession planning and understanding the transfer conditions outlined in the Franchise Agreement.