Does C12 Group consider suspension from a national securities exchange a disqualifying factor?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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
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 being subject to a 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 a disqualifying factor. This applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark.
This means that if C12 Group, its predecessors, certain individuals named in Item 2 of the FDD, or any affiliated entities offering franchises under C12 Group's trademark are currently under an order from a national securities association or exchange that suspends or expels them, they would be considered disqualified. This is a measure to ensure that the franchise system is led by individuals and entities with a clean record in terms of securities regulations.
For a prospective franchisee, this indicates that C12 Group places importance on regulatory compliance and ethical conduct within its organization. It suggests that C12 Group aims to maintain a high standard of integrity among its leadership and affiliated parties, which can be a positive signal for potential franchisees looking for a stable and reputable franchise system.