Are the C12 Group franchisor's termination rights subject to state and federal law?

According to C12 Group's 2025 Franchise Disclosure Document, the franchisor's termination rights are subject to state and federal law. Specifically, the franchise agreement states, "The provisions under this Section are subject to state and federal law."

This means that while C12 Group outlines specific conditions under which they can terminate the franchise agreement, these conditions and the overall process must comply with applicable state and federal regulations. These regulations can vary significantly by jurisdiction and may provide additional protections to franchisees beyond what is stated in the franchise agreement itself.

Prospective franchisees should be aware that state and federal laws can impact the enforceability of certain termination clauses. For example, some states have franchise laws that require a longer notice period or a right to cure certain defaults. Franchisees should consult with an attorney to understand their rights and obligations under both the franchise agreement and applicable laws. Additionally, addenda for Minnesota, North Dakota, and Washington highlight specific state laws that affect the franchise agreement, including termination and renewal.