What is the C12 Group franchisee's obligation to do if they have a dispute, conflict, or disagreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Consistent with scriptural commands for those in the body of Christ to resolve such disputes with a commitment toward mutual love, truth, unity, and God's eternal purposes, Franchisor has defined a process which incorporates these principles (see Matthew 5:23-26, 18:15-17 and 1 Corinthians 6:1-7). 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.
Step Two: If the dispute remains unresolved, either Franchisor or Franchisee may bring the dispute to a panel of three of C12's Board Members, whom You will mutually select, that are not members of the Franchisor's senior staff.
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 C12 Group Franchise Disclosure Document, franchisees are obligated to follow a three-step dispute resolution process rooted in Christian principles. This process emphasizes resolving conflicts with mutual love, truth, unity, and adherence to biblical teachings. The franchisee is explicitly prohibited from pursuing public legal action, as it is viewed as costly and detrimental to the stewardship responsibilities of all parties involved. This approach is intended to foster a biblically sound method for resolving disagreements within the C12 Group franchise system.
The first step requires the franchisee to directly address their concern with the individual involved, approaching them with humility and a spirit of reconciliation. If the disagreement involves a peer or a member of C12 Group's office staff, the franchisee must then engage C12 Group's President or Chairman. Should the disagreement involve either the President or Chairman, the franchisee is to engage in an expanded discussion with the one who is not involved, similar to seeking counsel from an elder in the church. Franchisees can also appeal to the Chair Advisory Council, comprised of regional peer representatives, who serve as advisors and advocates to C12 Group.
If the dispute remains unresolved after the initial steps, either C12 Group or the franchisee can bring the dispute to a panel of three C12 Group Board Members, mutually selected, who are not part of the senior staff. If the franchisee still disagrees with the panel's decision, they have the right to request binding Christian arbitration. This arbitration process is to be conducted according to the Christian Conciliation Rules of Procedure, as outlined in the ICC booklet Guidelines for Christian Conciliation. C12 Group commits to covering all fees and expenses associated with the mediator, case administrator, and/or arbitrator, aiming to fully support a biblically faithful resolution process.