Does C12 Group have different criteria for administrative, criminal, and civil actions?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion, or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- 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 FDD, C12 Group outlines specific criteria regarding administrative, criminal, and civil actions against the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the C12 Group's principal trademark.
The criteria include that no party has a pending administrative, criminal, or civil action alleging a felony, violation of franchise, antitrust, or securities law, fraud, embezzlement, misappropriation, unfair practices, or comparable allegations. Furthermore, C12 Group states that no party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
C12 Group also specifies that no party has been convicted of a felony or pleaded nolo contendere to a felony charge, or within the 10-year period preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion, or misappropriation of property; or unfair or deceptive practices or comparable allegations. Additionally, no party should be subject to a currently effective injunctive or restrictive order relating to the franchise or under specific Federal, State, or Canadian laws, or any order of a national securities association or exchange, or any injunctive or restrictive order relating to any other business activity resulting from an action brought by a public agency.