What was the date of the consent order between the Commissioner and The C12 Group?

According to the 2025 C12 Group Franchise Disclosure Document, a consent order was agreed to between the Maryland Securities Commissioner and The C12 Group, LLC on May 15, 2012. This order resolved an administrative proceeding (Case No. 2011-0530) initiated by the Commissioner following an investigation into C12 Group's franchise activities in Maryland. The Commissioner had concerns that C12 Group violated Maryland franchise laws related to registration, disclosure, anti-fraud provisions, and an Escrow Order.

The issues stemmed from C12 Group selling a franchise in Maryland when it was not registered to do so in the state and failing to deposit the initial franchise fees into an escrow account as mandated by a 2009 Escrow Order. As part of the consent order, C12 Group agreed, without admitting or denying any legal violations, to immediately and permanently cease offering or selling franchises in Maryland in violation of the Maryland Franchise Law.

Furthermore, C12 Group committed to promptly apply for franchise registration in Maryland and to offer rescission to the franchisee who had been sold a franchise in violation of the law. This consent order indicates a past regulatory issue that prospective franchisees should be aware of, particularly those considering operating in Maryland. It demonstrates the importance of franchisors adhering to state franchise laws and registration requirements.