Where must litigation be conducted for C12 Group franchisees, according to the FDD?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| u. Dispute resolution by arbitration or mediation | XII, Exhibit F | All matters can be appealed up through C12’s defined three-step dispute resolution process which culminates in Christian arbitration pursuant to which the parties engage three Bible-believing Christian arbitrators as follows: one selected by the franchisee, one selected by C12, and one selected by such two arbitrators. The remedy recommended by the arbitration panel will be binding and final with no further recourse by either party. Subject to state law. |
|---|---|---|
| v. Choice of forum | XII, Exhibit F | Litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures (subject to applicable state law). |
| w. Choice of Law | XII | Texas law will govern (subject to applicable state law). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, litigation involving C12 Group franchisees must generally be conducted in Texas. However, this is subject to certain exceptions. The FDD indicates that Exhibit F may contain specific state disclosures that could override Texas as the choice of forum, depending on applicable state law. This means that while Texas law typically governs legal disputes, the location of litigation could shift based on the franchisee's state and its specific regulations.
This stipulation is important for prospective franchisees to consider, as it dictates where they may need to travel and engage legal counsel should a dispute arise with C12 Group. Franchisees should carefully review Exhibit F of the FDD and any state-specific addenda to understand if their state has any provisions that would supersede the requirement to litigate in Texas. Understanding the choice of forum is a critical part of assessing the legal and financial implications of investing in a C12 Group franchise.
It is common for franchise agreements to specify a particular jurisdiction for legal proceedings, often the state where the franchisor's headquarters are located. This can create additional costs and logistical challenges for franchisees who live outside of that state. Therefore, prospective C12 Group franchisees should consult with a legal professional to fully understand the implications of the choice of forum provision and how it might affect them based on their individual circumstances and location.