factual

In the first step of dispute resolution for C12 Group, to whom should the franchisee initially address their concern?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

Specifically, Franchisee agrees to not pursue public legal action, which serves to generate great expense, compromises the parties' joint stewardship responsibilities before the Lord, and negatively impacts the parties' joint

ability to cost-effectively resolve disagreements biblically. Franchisee agrees to submit disputes, conflicts or disagreements relating to Franchisee's role as franchisee to Franchisor's three-step dispute resolution process, as follows:

Step One: Address Franchisee's concern directly to the individual(s) with whom Franchisee has the disagreement, approaching him/her in a spirit of humility and reconciliation (see Matthew 18:15).

If the disagreement involves a peer or Franchisor's office staff member, the next step would involve engaging Franchisor's President or Chairman.

If the disagreement involves Franchisor's President or Chairman, the next step would include engaging in an expanded discussion with the one which is not involved, much as one would in bringing the matter before an elder in the church.

Franchisor has established 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.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to C12 Group's 2025 Franchise Disclosure Document, the initial step in resolving disputes involves direct communication. The franchisee is expected to address their concern directly to the individual(s) with whom they have the disagreement. This approach should be undertaken with a spirit of humility and reconciliation, as emphasized in Matthew 18:15.

If the disagreement involves a peer or a member of C12 Group's office staff, the next step would be to engage C12 Group's President or Chairman. However, if the disagreement involves the President or Chairman, the subsequent step would involve an expanded discussion with the individual who is not involved, similar to bringing the matter before an elder in the church.

C12 Group also has a Chair Advisory Council, composed of regional peer representatives selected for rotating terms, who serve as advisors and advocates for franchisees. Franchisees can appeal to this council through their Regional Representative to address concerns or disputes. The council includes a delegate from C12 Group's Board of Directors, in addition to C12 Group's Officers.

This multi-tiered approach to dispute resolution, starting with direct communication and escalating as needed, reflects C12 Group's emphasis on biblical principles and mutual resolution. It also provides franchisees with multiple avenues for addressing concerns, from direct engagement with involved parties to appealing to advisory councils and senior leadership.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.