On whom is the C12 Group franchise agreement binding?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall be binding upon Franchisee and Franchisor and their respective heirs, administrators, executors, survivors, and/or successors and assigns.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreement is binding between The C12 Group, LLC, identified as the Franchisor, and the party or parties listed as the Franchisee on the Summary Page. This includes instances where the Franchisee is either one or more individuals or an entity. The agreement also extends to the heirs, administrators, executors, survivors, and/or successors and assigns of both the Franchisee and Franchisor. This establishes a clear legal relationship, ensuring that both parties are obligated to fulfill the terms and conditions outlined in the agreement.
Furthermore, if the Franchisee is a corporate entity or LLC, the agreement stipulates that an owner must be designated to act on behalf of the Franchisee, with the authority to bind the entity. All owners with a five percent (5%) or greater beneficial interest in Franchisee must agree to honor the terms of this Agreement in their individual capacities by executing the Owners Guaranty attached hereto as Attachment A. Such individuals' liability under this Agreement shall be joint and several. This ensures that the obligations are not only on the business entity but also on the individuals who have a significant stake in the Franchisee's operations.
This comprehensive binding nature of the agreement is a standard practice in franchising, designed to protect the interests of both the Franchisor and the Franchisee. It ensures that all parties involved are committed to upholding the terms of the franchise agreement, contributing to the stability and success of the C12 Group franchise system. Prospective franchisees should carefully review the Summary Page and Attachment A to fully understand who is bound by the agreement and the extent of their obligations.