What happens if a C12 Group franchisee makes an unapproved transfer of franchise responsibility?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, an unapproved transfer of franchise responsibility is grounds for immediate termination of the franchise agreement by C12 Group. The FDD specifies that C12 Group can terminate the agreement immediately upon written notice to the franchisee if there is an unapproved transfer of franchise responsibility or any ownership interests in the franchisee entity.
In addition to immediate termination, C12 Group retains the right to address a breach of the agreement through alternative measures if the franchisee does not satisfactorily resolve the issue within the given cure period. These alternative measures, at C12 Group's discretion, can include redefining the franchise scope or territory.
Furthermore, if C12 Group terminates the agreement for cause, it has the option to continue operating the franchised business. This may involve designating a Chair or other representative, potentially another C12 Group franchisee, to manage the business.