Does the C12 Group franchisor have to provide a cure period for all breaches of the agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails to cure any default within thirty (30) days after receiving notice from Franchisor, Franchisor may terminate this Agreement upon notice to Franchisee.
Termination by Franchisor Without Opportunity to Cure.
Franchisor may terminate this Agreement immediately, upon written notice to Franchisee, should any of the following occur: (i) Franchisee or any member or owner of Franchisee receiving a criminal conviction, entering a guilty plea, or entering a plea of nolo contendere with respect to any felony or crime of moral turpitude; (ii) the abandonment of the Franchised Business or sustained inability of Franchisee to productively engage in the Franchised Business; (iii) an unapproved transfer of Franchise responsibility or any ownership interest(s) in Franchisee if Franchisee is an entity; (iv) Franchisee's filing of bankruptcy or making of an assignment for the benefit of creditors; and/or (v) unrepentant behavior by Franchisee or any member or owner of Franchisee that strikes at the unity of those engaged in C12 as Area Chairs and members.
In the event that the franchisee is an entity, Franchisor may also exercise its termination rights pursuant to this section in the event that any of the foregoing shall occur with respect to any owner of such entity.
The provisions under this Section are subject to state and federal law.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchisor does not have to provide a cure period for all breaches of the agreement. Generally, if a franchisee fails to correct a default within 30 days of receiving notice from C12 Group, the franchisor can terminate the agreement with notice. However, there are specific instances where C12 Group can terminate the agreement immediately without providing an opportunity to cure the breach.
C12 Group can terminate the agreement immediately if the franchisee or any member or owner of the franchisee receives a criminal conviction, enters a guilty plea, or enters a plea of nolo contendere related to any felony or crime of moral turpitude. Immediate termination is also possible if the franchisee abandons the franchised business, demonstrates a sustained inability to productively engage in the franchised business, or engages in an unapproved transfer of franchise responsibility or any ownership interest in the franchisee entity. Filing for bankruptcy or making an assignment for the benefit of creditors can also lead to immediate termination. Finally, unrepentant behavior by the franchisee or any member/owner that undermines the unity of C12 as Area Chairs and members can result in immediate termination.
It is important to note that these termination provisions are subject to state and federal law, which may provide additional protections or limitations for the franchisee. For example, the Minnesota Addendum to the Franchise Agreement states that C12 Group will comply with Minnesota law, which requires 90 days' notice of termination (with 60 days to cure) except in certain specified cases. A prospective franchisee should carefully review the franchise agreement and any state-specific addenda to understand their rights and obligations regarding termination and cure periods.