What dispute resolution process does C12 Group use, and what are its key features?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
hed a Chair Advisory council comprised of regional peer representatives selected for rotating terms to serve as advisors and advocates of franchisees to Franchisor. Any franchisee may also appeal via their Regional Representative to bring matters of concern or dispute to the Chair Advisory Council which includes a delegate of the Franchisor's Board of Directors in addition to Franchisor's Officers.
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- 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.
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- 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.
In any and all disputes arising with respect to the Agreement, if the laws of any state are to be applied thereto such laws shall be exclusively the laws of the State of Texas, without giving effect to provisions or procedures regarding conflicts of laws. Further, in the event that any dispute arising with respect to this Agreement is to be litigated, all parties hereby consent to the exclusive jurisdiction of the state court of Texas sitting in Bexar County, Texas.
XIII. Waivers
Franchisor is committed to operating with grace and transparency and with a commitment to dealing with all C12 community matters in truth and love (Ephesians 4:15), consistent with the Dispute Resolution Process defined in XII above. With this in mind, the parties agree explicitly to the following:
- a. Implied Waivers: failure of either party at any time to require performance of any provision of this Agreement shall not affect the right of such party to require full performance at any later time, and the waiver by either party of a breach of any provision shall not be taken or held to be a waiver by such party of any later breach or as nullifying the effectiveness of any other provision of this Agreement.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the dispute resolution process involves multiple steps, beginning with an appeal via the Regional Representative to the Chair Advisory Council, which includes a delegate from C12 Group's Board of Directors and C12 Group's Officers. If the dispute is not resolved at this stage, either C12 Group or the franchisee can bring the dispute to a panel of three mutually selected C12 Group Board Members who are not part of the senior staff.
If the franchisee remains unsatisfied after the second step, they have the right to request binding Christian arbitration. This arbitration process is to be conducted following the Christian Conciliation Rules of Procedure outlined in the ICC booklet Guidelines for Christian Conciliation. The complete text of these rules is available on the ICC PEACE website or by contacting ICC PEACE directly.
Consistent with these rules, each party involved in the agreement will agree to the selection of an arbitrator. If an agreement on the arbitrator cannot be reached, the Institute for Christian Conciliation (ICC) will be asked to provide the name of a qualified person to serve as the arbitrator. Ultimately, all matters can be appealed through C12 Group's defined three-step dispute resolution process, which culminates in Christian arbitration. This involves engaging three Bible-believing Christian arbitrators: one selected by the franchisee, one by C12 Group, and one selected jointly by the first two arbitrators. The remedy recommended by the arbitration panel is binding and final, with no further recourse for either party, subject to state law. Litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures, and Texas law will govern, also subject to applicable state law.