What happens if a person holding a C12 Group franchise is not a qualified Principal Chair?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
No person will be permitted to hold the Franchise who is not a qualified Principal Chair.
If Franchisee is not restored to full operating capacity or no qualified transferee can be found during this period, Franchisor may terminate this Agreement.
Franchisee who meets all of Franchisor's ongoing training requirements (a "C12 Area Chair"). If circumstances should ever change, and such person is no longer both an owner and officer of Franchisee and Franchisee does not have a suitable replacement candidate for the role of C12 Area Chair (contingent on Franchisor's approval), then Franchisor may, in its sole discretion, terminate this Agreement or allow the Franchised Business to be transferred or sold to an approved third-party.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, only qualified Principal Chairs are permitted to hold a franchise. If a franchisee is not restored to full operating capacity or a qualified transferee cannot be found, C12 Group has the right to terminate the franchise agreement.
If the franchisee meets all ongoing training requirements and is designated as a "C12 Area Chair," and circumstances change such that the person is no longer both an owner and officer of the franchisee, and there is no suitable replacement candidate for the role of C12 Area Chair (contingent on C12 Group's approval), then C12 Group may terminate the agreement or allow the franchised business to be transferred or sold to an approved third party.
This stipulation highlights the importance of maintaining qualified leadership within the C12 Group franchise. Prospective franchisees should carefully consider the implications of not meeting the qualifications or not having a suitable replacement, as it could lead to termination of the agreement or the need to transfer or sell the business. This also underscores the need for franchisees to continuously meet training requirements to maintain their status as a C12 Area Chair.