Does the C12 Group dispute resolution process require binding arbitration?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Step Three: If Franchisee is still unwilling to abide by the decision of the panel of the three C12 non-executive Board Members, then Franchisee shall have the right to request binding Christian arbitration.
The parties agree for the arbitration process to be conducted in accordance with the Christian Conciliation Rules of Procedure contained in the ICC booklet Guidelines for Christian Conciliation.
In accordance with the Rules of Procedure for Christian Conciliation of the Institute for Christian Conciliation (complete text of the Rules is available at www.iccpeace.com/rules or by contacting ICC PEACE at info@iccpeace.com or calling 844-707-3223).
Consistent with these rules, each party to the agreement shall agree to the selection of the arbitrator.
The parties agree that if there is an impasse in the selection of the arbitrator, the Institute for Christian Conciliation (hereafter ICC), shall be asked to provide the name of a qualified person who will serve in that capacity.
Consistent with the Rules of Procedure, the arbitrator shall issue a written opinion within a reasonable time.
The parties acknowledge that the resolving of conflicts requires time and financial resources.
In an effort to fully encourage and implement a biblically faithful process, Franchisor agrees to pay all fees and expenses, which may be required by the mediator, case administrator, and/or arbitrator.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, the C12 Group's dispute resolution process does not initially require binding arbitration. The process involves multiple steps before arbitration is considered. First, a franchisee may appeal to the Chair Advisory Council through their Regional Representative. If the dispute remains unresolved, either the C12 Group or the franchisee can bring the dispute to a panel of three mutually selected C12's Board Members who are not part of the Franchisor's senior staff.
Only if the franchisee is still unwilling to accept the decision of the panel of three C12 non-executive Board Members does the franchisee have the right to request binding Christian arbitration. This arbitration is to be conducted following the Christian Conciliation Rules of Procedure outlined in the ICC booklet Guidelines for Christian Conciliation. The FDD specifies that the Franchisor will cover all fees and expenses associated with the mediator, case administrator, and/or arbitrator, encouraging a biblically faithful resolution process.
This approach is somewhat unique in franchising, where mandatory binding arbitration is common. The C12 Group's willingness to cover arbitration costs is also noteworthy, as it reduces the financial burden on the franchisee during dispute resolution. However, franchisees should be aware that the arbitration process is based on Christian conciliation principles, which may differ from standard legal arbitration.