What happens if either party breaches the terms of the C12 Group Franchise Agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement is automatically renewed on a year-to-year basis until (1) either you give C12 a notice to discontinue at least 90 days prior to the end of the then-current term, or C12 gives you a notice to discontinue at least 90 days prior to the end of the then-current term, (2) either party should breach its terms or conditions, or (3) franchisee fails to consent to any updates or changes in the C12 business model and Operations Manual which may have occurred during the prior year by signing a Franchise Compliance Administrative Update letter each year. Compliance with the Field Operations Manual will be understood to include the Brand Standards, mandatory elements of the Meeting Playbook and One-on- One Playbook, and any standard components of the C12 member experience put forth by the C12 Group, LLC.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, if either C12 Group or the franchisee breaches the terms or conditions of the Franchise Agreement, the agreement is automatically discontinued. This means that any violation of the agreement, whether by the franchisor or the franchisee, can lead to the immediate termination of the franchise relationship. This is a significant point for prospective franchisees to consider, as it underscores the importance of fully understanding and adhering to all terms outlined in the Franchise Agreement.
This automatic discontinuation clause places a strong emphasis on compliance and can be seen as both a risk and a benefit. For the franchisee, it means that even a seemingly minor infraction could result in the loss of their franchise. Conversely, it also provides a level of assurance that C12 Group will also be held accountable for upholding their end of the agreement. Franchisees should carefully review the Franchise Agreement with legal counsel to fully understand what constitutes a breach and what steps can be taken to prevent such a situation.
In the franchise industry, termination clauses are common, but the specific triggers and consequences can vary widely. Some franchise agreements may allow for a cure period, giving the breaching party an opportunity to rectify the issue before termination. However, in the case of C12 Group, the agreement states that a breach leads to automatic discontinuation, which may be a stricter condition than some other franchise opportunities. Therefore, prospective franchisees should weigh this factor carefully when evaluating the overall risk and reward of investing in a C12 Group franchise.