What law governs the C12 Group franchise agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
e North Dakota Franchise Investment Law, franchisees are not required to consent to the jurisdiction of the courts in Texas and may fall under the jurisdiction of the courts in North Dakota.
With respect to Item 17(w) of the Disclosure Document and Section XII of the Franchise Agreement, in regard to Section 51-19-09 of the North Dakota Franchise Investment Law, the agreement shall be governed according to the laws of the State of North Dakota or a non-specified State agreed to by all parties.
North Dakota Franchise Investment Law, Section 51-19-10 prohibits a franchisee from waiving his rights to a jury trial. To the extent that this Franchise Agreement is governed by North Dakota law, any provisions to the contrary in the Franchise Agreement are hereby deemed to be deleted.
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WASHINGTON ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND RELATED AGREEMENTS
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreement's governing law depends on the franchisee's location. For franchisees in North Dakota, the agreement is governed by the laws of either North Dakota or another state agreed upon by all parties, as per Section 51-19-09 of the North Dakota Franchise Investment Law. This law also stipulates that franchisees cannot waive their right to a jury trial, and any conflicting provisions in the franchise agreement are considered deleted.
For franchisees in Washington, the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, takes precedence in the event of any conflict of laws. This act and related court decisions may also supersede the franchise agreement, particularly in areas concerning termination and renewal of the franchise.
In Minnesota, Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prevent C12 Group from requiring litigation to occur outside of Minnesota. Additionally, the franchise agreement cannot reduce any rights provided under Minnesota Statutes, Chapter 80C. These rules also prohibit franchisees from waiving their right to a jury trial or consenting to liquidated damages or termination penalties. Therefore, the governing law for a C12 Group franchise agreement is subject to specific state laws that may modify or supersede the standard agreement terms.
Prospective franchisees should be aware that the standard C12 Group franchise agreement may be altered by state-specific addenda. It is important to carefully review the FDD and any state-specific addenda with legal counsel to understand which laws will govern the agreement and how those laws may impact their rights and obligations.