What documents must be signed by the current and new franchisee for a C12 Group franchise transfer?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ransfer fee. In addition, if the transferee acquiring the entire Franchised Business is not an existing C12 franchisee, they must pay Franchisor a training fee. The transfer is deemed approved only after the transferee has been deemed qualified to serve by Franchisor in its sole discretion, the transfer fee of $6,000 has been paid to Franchisor, all outstanding amounts owed by Franchisee to Franchisor have been paid in full, Franchisee (and its owners, if applicable) has executed a general re
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, in order to transfer a C12 Group franchise, both the current franchisee and the new franchisee (transferee) must sign certain documents. Specifically, the current franchisee must execute a general release of C12 Group. Additionally, if more than fifty percent (50%) of the franchised business is being transferred, the transferee must sign a new franchise agreement with C12 Group.
This requirement ensures that C12 Group maintains control over who operates a franchise within its system and that the new franchisee is bound by the then-current terms and conditions of the franchise agreement. The new franchise agreement signed by the transferee may contain terms that are materially different from the original agreement. This means a potential buyer needs to carefully review the new franchise agreement to understand their obligations and rights.
It is important to note that the transfer is only deemed approved after the transferee is qualified by C12 Group, the $6,000 transfer fee is paid, all outstanding amounts owed by the current franchisee are paid, and the required documents are executed. This process allows C12 Group to ensure that the new franchisee meets their standards and is fully committed to the C12 Group system.