factual

If the C12 Group franchisee is an entity, who must provide daily supervision of the franchised business?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

  • b. Entity Ownership. If Franchisee is an entity and not an individual, the Franchised Business must be under the daily supervision of someone who is an owner and, if applicable, an officer of the

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to the 2025 C12 Group Franchise Disclosure Document, if the franchisee is a business entity rather than an individual, the franchised business must be under the daily supervision of someone who is both an owner and, if applicable, an officer of the entity. This requirement ensures that the C12 Group franchise is actively managed by someone with a vested interest and authority within the franchisee entity.

This stipulation is important for maintaining the standards and operational consistency of C12 Group franchises. By requiring an owner/officer to be involved in daily supervision, C12 Group aims to ensure that the franchise is managed in accordance with their established methods and standards. This also provides a clear point of contact and accountability for C12 Group to communicate with regarding the franchise's operations.

For a prospective franchisee considering structuring their C12 Group business as an entity, it is crucial to identify an individual who meets both the ownership and officer criteria and is willing to commit to the daily supervision of the franchise. If the designated individual ceases to fulfill both roles, the franchise agreement could be terminated unless a suitable replacement is found and approved by C12 Group. This requirement underscores the importance of careful planning and succession management for entity-owned franchises.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.