In the C12 Group dispute resolution process, what is the role of the Board of Directors?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Step Two: If the dispute remains unresolved, either Franchisor or Franchisee may bring the dispute to a panel of three of C12's Board Members, whom You will mutually select, that are not members of the Franchisor's senior staff.
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 C12 Group's 2025 Franchise Disclosure Document, the Board of Directors plays a role in the dispute resolution process between the franchisor and franchisee. Specifically, if a dispute remains unresolved after the initial steps, either the franchisor or franchisee can bring the dispute to a panel of three C12 Group Board members. These board members must be mutually selected and cannot be members of the franchisor's senior staff. This step is part of a three-step dispute resolution process that C12 Group utilizes.
The involvement of the Board of Directors is designed to provide an impartial review of the dispute, as the selected members are not part of the franchisor's senior management. This ensures a degree of fairness and objectivity in the evaluation of the issues. The goal is to facilitate a resolution that is acceptable to both parties, aligning with C12 Group's commitment to Christian principles of conflict resolution.
If the franchisee remains unsatisfied with the decision made by the panel of three non-executive Board members, the franchisee has the right to request binding Christian arbitration. This indicates that the Board's decision is not final but serves as an intermediate step in the dispute resolution process. The arbitration process is conducted in accordance with the Christian Conciliation Rules of Procedure, with C12 Group agreeing to pay all fees and expenses associated with the mediator, case administrator, and/or arbitrator. This financial commitment underscores C12 Group's dedication to resolving conflicts in a biblically faithful manner.