What is the definition of a 'Principal Chair' according to the C12 Group FDD?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
To simplify the language, this disclosure document uses "we," "us," "our," and "C12" to refer to The C12 Group, LLC, the franchisor. "You," "your," and "yours" refer to the individual, corporation, limited liability company, partnership, or other entity that buys a C12 franchise. "FDD" means this Franchise Disclosure Document. If the franchisee is an individual, the terms "franchisee" and "Principal Chair" as used in this FDD both refer to such franchisee. If the franchisee is an entity, the term "Principal Chair" means the person owning the largest percentage of voting equity in such franchisee entity, or the agent designated by the entity to be the responsible party(ies) operationally to the Franchisor.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the definition of "Principal Chair" depends on whether the franchisee is an individual or an entity. If the franchisee is an individual, the terms "franchisee" and "Principal Chair" both refer to that individual.
If the franchisee is an entity such as a corporation, limited liability company, or partnership, the term "Principal Chair" refers to the person owning the largest percentage of voting equity in that entity. Alternatively, the entity can designate an agent to be the responsible party operationally to C12 Group, and that agent would be considered the "Principal Chair".
In essence, the Principal Chair is the individual ultimately responsible for the C12 Group franchise, whether that's the franchisee themselves or a designated representative of a franchisee entity. This individual must be actively involved in the day-to-day operations and meet the training requirements set by C12 Group.