Are all franchise and training fees refundable if the C12 Group terminates the Franchise Agreement after a Remediation Plan?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
dentiality and non-competition obligations Franchisee previously agreed to under this Agreement before attending New Chair Training. Additionally, if Franchisor determines Franchisee is not making sufficient progress on a Remediation Plan, Franchisor reserves the right to give Franchisee written notice of termination of the Franchise Agreement. If Franchisor terminates the Franchise Agreement as provided for in this
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, if the franchisor terminates the Franchise Agreement after the franchisee attempts a Remediation Plan, not all fees are refundable. Specifically, only any unspent portions of the Prepaid Marketing Fund will be returned to the franchisee.
The document states that all other franchise and training fees are non-refundable in this scenario. This means that the initial franchise fee, training fees, and any other fees paid to C12 Group, apart from the unspent marketing funds, will not be returned if the agreement is terminated after a Remediation Plan.
This policy is important for potential franchisees to consider, as it represents a financial risk. If a franchisee struggles during the initial training and is required to undertake a Remediation Plan, there is no guarantee of success. If C12 Group then terminates the agreement, the franchisee will lose the initial franchise and training fees, potentially amounting to a significant financial loss. Prospective franchisees should carefully evaluate their capabilities and resources to ensure they can successfully complete the training program and avoid the risk of termination and associated financial losses.