What is the length of the cure period C12 Group provides for nonperformance?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to meet minimum required levels of target market penetration (i.e., 33% of Baseline Target within 24 months and 50% within 36 months of becoming a franchisee with at least one (1) CEO Forum with at least ten (10) CEO Members within two years of opening the business should 33% of Baseline Target be less than ten (10) CEOs), C12 has the unilateral right to redefine exclusive and non-exclusive Territory definitions but will endeavor to jointly discuss and plan such changes in advance. Each franchisee's Baseline Target is established on a case-by-case basis. C12 also reserves the unilateral right to terminate a Franchise Agreement for nonperformance after a 90-day right to cure on the part of the franchisee.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, if a franchisee fails to meet the minimum required levels of target market penetration, C12 Group reserves the right to terminate the Franchise Agreement for nonperformance. However, C12 Group will provide a 90-day period for the franchisee to correct the nonperformance.
The minimum required levels of target market penetration are defined as achieving 33% of the Baseline Target within 24 months and 50% within 36 months of becoming a franchisee. This also requires having at least one CEO Forum with at least ten CEO Members within two years of opening the business, should 33% of the Baseline Target be less than ten CEOs. The Baseline Target is established on a case-by-case basis for each franchisee.
This 90-day cure period is a critical opportunity for franchisees to address any shortcomings in their performance and avoid termination of their agreement. It is important for prospective franchisees to understand these performance expectations and ensure they have a plan to meet them within the specified timeframes to maintain their franchise rights with C12 Group.