What is C12 Group's financial obligation regarding the costs of mediation or arbitration?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to Item 17(u) of the Disclosure Document and Section XII of the Franchise Agreement, in regard to Section 51-19-09 of the North Dakota Franchise Investment Law, all arbitration or mediation must take place at a location agreeable to all parties involved and may not be remote from the franchisee's place of business.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the standard Franchise Agreement for C12 Group requires mediation or arbitration to occur at a location agreeable to all parties involved. In North Dakota, this location cannot be remote from the franchisee's place of business. The FDD does not specify which party is responsible for covering the costs of mediation or arbitration.
This lack of clarity could lead to potential disputes between C12 Group and its franchisees regarding who bears the financial burden of these proceedings. Franchisees may incur significant expenses if they are required to cover a substantial portion of mediation or arbitration costs.
Prospective franchisees should seek clarification from C12 Group regarding the allocation of mediation and arbitration costs. It is important to understand whether these costs are shared, capped, or the sole responsibility of either the franchisor or the franchisee. Understanding these financial obligations is crucial for assessing the overall financial feasibility of investing in a C12 Group franchise.