What is the deadline for assigning the C12 Group franchise to a C12-approved buyer after the franchisee's involuntary physical departure?
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 the 2025 C12 Group Franchise Disclosure Document, in the event of a franchisee's death or disability, the franchise must be assigned by the estate to a C12 Group-approved buyer within six months of the franchisee's involuntary physical departure from the practice. This condition must be met for the situation to qualify as a transfer. This requirement ensures business continuity and adherence to C12 Group's standards even when the original franchisee is no longer able to manage the business.
This provision protects C12 Group's interests by ensuring that a qualified and approved individual takes over the franchise, maintaining the quality of service and brand reputation. It also provides a defined timeframe for the franchisee's estate to handle the transfer, which can be helpful in managing the deceased or disabled franchisee's affairs. The six-month period allows sufficient time for finding a suitable buyer and completing the necessary approval processes with C12 Group.
For a prospective franchisee, this clause highlights the importance of succession planning. It may be prudent to have a plan in place that identifies potential successors and ensures they meet C12 Group's approval criteria. Additionally, understanding the financial implications of a potential transfer, such as transfer fees and training costs for the new franchisee, is crucial. Franchisees should discuss these aspects with C12 Group to fully prepare for unforeseen circumstances.