If the franchisee is an entity, who is considered the 'Principal Chair' for the C12 Group franchise?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
To simplify the language, this disclosure document uses "we," "us," "our," and "C12" to refer to The C12 Group, LLC, the franchisor. "You," "your," and "yours" refer to the individual, corporation, limited liability company, partnership, or other entity that buys a C12 franchise. "FDD" means this Franchise Disclosure Document. If the franchisee is an individual, the terms "franchisee" and "Principal Chair" as used in this FDD both refer to such franchisee. If the franchisee is an entity, the term "Principal Chair" means the person owning the largest percentage of voting equity in such franchisee entity, or the agent designated by the entity to be the responsible party(ies) operationally to the Franchisor. An "Associate Chair" is a person who is not a franchisee but who has been selected by both C12 and the franchisee to perform many of the same functions such as building and facilitating Business Forums within the Principal Chair's franchise area. An "Area Chair" is either a "Principal Chair" or an "Associate Chair."
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–9)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the definition of 'Principal Chair' depends on whether the franchisee is an individual or an entity. If the franchisee is an entity such as a corporation, limited liability company, or partnership, the 'Principal Chair' is defined as either the person owning the largest percentage of voting equity in the franchisee entity, or the agent designated by the entity to be the responsible party operationally to C12 Group.
This distinction is important because the Principal Chair is the primary contact and responsible party for the C12 Group franchise. If the franchisee is an entity, it allows for flexibility in designating who will fulfill this role, either based on equity ownership or operational responsibility. This ensures that C12 Group has a clear point of contact within the franchisee's organization.
Prospective franchisees who plan to operate their C12 Group franchise through a business entity should carefully consider who they designate as the Principal Chair. This individual will be the main liaison with C12 Group and will be responsible for the operational aspects of the franchise. The designation should align with the entity's ownership structure and operational management to ensure effective communication and decision-making.