What conditions must be met before a C12 Group franchise transfer is deemed approved?
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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a transfer of a C12 Group franchise is officially approved once several conditions are satisfied. First, the person or entity taking over the franchise must be deemed qualified by C12 Group, a decision made at C12 Group's discretion. This suggests that the incoming franchisee will need to meet certain standards related to business acumen, financial stability, and potentially an alignment with C12 Group's values.
In addition to being deemed qualified, the transferee must pay a transfer fee of $6,000 to C12 Group. This fee likely covers the administrative costs associated with processing the transfer and updating the franchise agreement. Furthermore, all outstanding financial obligations owed by the current franchisee to C12 Group must be settled in full. This ensures that C12 Group does not inherit any financial liabilities from the previous franchisee.
Finally, the original franchisee (and their owners, if applicable) must sign a general release of C12 Group, which protects C12 Group from any future claims or lawsuits arising from the previous franchisee's operation of the business. If the transfer involves more than 50% of the ownership of the franchise, the transferee must also sign a new franchise agreement with C12 Group. This new agreement may contain terms that are different from the original agreement, so it's crucial for the transferee to carefully review and understand the new terms before proceeding with the transfer.