What documents must be signed by the existing and new franchisees for C12 Group to approve a 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 C12 Group's 2025 Franchise Disclosure Document, for a transfer of a C12 Group franchise to be approved, several conditions must be met, including the execution of specific documents. If more than fifty percent of the ownership of the franchise business is being transferred, both the existing franchisee and the new franchisee (transferee) must sign a new franchise agreement with C12 Group. This new agreement may have terms that are significantly different from the original franchise agreement.
In addition to the new franchise agreement, the existing franchisee (and their owners, if applicable) must execute a general release of C12 Group. This release essentially absolves C12 Group from any potential liabilities or claims the franchisee might have. These requirements ensure that C12 Group maintains control over who operates a franchise under their brand and that all parties are bound by the current terms and conditions.
These stipulations are fairly standard in the franchise industry, as franchisors typically want to ensure that new franchisees meet their standards and agree to their current operating procedures. The transfer is only officially approved once the transferee is deemed qualified by C12 Group, the $6,000 transfer fee is paid, all outstanding debts owed by the existing franchisee are settled, and all required documents are signed.