Does C12 Group consider orders related to trade regulation laws as disqualifying?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business
activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group considers currently effective injunctive or restrictive orders or decrees relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from a concluded or pending action or proceeding brought by a public agency as potentially disqualifying. This extends to orders from national securities associations or exchanges suspending or expelling a person from membership, or any order affecting a license as a real estate broker or sales agent. These restrictions stem from actions brought by a public agency or department.
For a prospective C12 Group franchisee, this means that any history of legal issues related to trade regulations, franchise law, securities, or antitrust matters could impact their eligibility to become a franchisee. It is crucial to disclose any such history during the application process. C12 Group will likely assess the nature and severity of past violations to determine if they pose a risk to the franchise system.
This requirement is fairly standard in franchising, as franchisors need to ensure that their franchisees are trustworthy and compliant with relevant laws to protect the brand and the interests of other franchisees. A history of violations could indicate a higher risk of future non-compliance, which could lead to legal and financial repercussions for the entire C12 Group system. Therefore, C12 Group's due diligence in this area is a protective measure for the franchise network.