What is the expected outcome of the arbitrator's decision in C12 Group's dispute resolution process?
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, if a dispute between C12 Group and a franchisee remains unresolved after initial steps, the franchisee has the right to request binding Christian arbitration. This means that the arbitrator's decision is final and legally enforceable.
The arbitration process is to be conducted following the Christian Conciliation Rules of Procedure outlined in the ICC booklet Guidelines for Christian Conciliation. Both parties must agree on the selection of the arbitrator. If they cannot agree, the Institute for Christian Conciliation (ICC) will provide a qualified person to serve as the arbitrator. The arbitrator is then expected to issue a written opinion within a reasonable timeframe.
C12 Group commits to covering all fees and expenses associated with the mediator, case administrator, and/or arbitrator, aiming to encourage a biblically faithful resolution process. However, franchisees should be aware that resolving conflicts still requires time and resources, even though the franchisor covers the direct costs of arbitration.
For franchisees in North Dakota, an addendum to the franchise agreement specifies that all arbitration or mediation must occur at a location agreeable to all parties and cannot be remote from the franchisee's place of business, as per North Dakota Franchise Investment Law. This addendum also clarifies that North Dakota franchisees are not required to consent to the jurisdiction of Texas courts and are protected from waiving their right to a jury trial under North Dakota law.