What does it mean to be in 'good standing' under the C12 Group Franchise Agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless sooner terminated, as hereafter provided, the Term of this Agreement is meant to be renewed each calendar year for additional one-year Renewal Terms (with each Renewal Term being one calendar year) so long as (i) both Franchisor and Franchisee agree to such renewal, (ii) Franchisee remains active in operating the Franchised Business, and (iii) Franchisee is in good standing under this Agreement. Being in good standing requires Franchisee to remain in compliance with the terms of this Agreement and Franchisee's agreement to any updates or changes in Franchisor's business model and Operations Manual that have occurred during the prior year. Any changes made in Franchisor's business model will be made at Franchisor's sole discretion and based on Franchisor's belief that the changes will strengthen the overall platform and enhance the C12 Group franchise system's long-term value to both members and franchisees.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, maintaining 'good standing' is crucial for franchisees, especially concerning the renewal of their franchise agreement. To be in good standing, a franchisee must consistently comply with all the terms outlined in the Franchise Agreement. This includes adhering to any updates or changes that C12 Group makes to its business model and Operations Manual during the preceding year.
The FDD emphasizes that C12 Group retains the sole discretion to implement changes to its business model, based on their assessment of what will strengthen the platform and enhance the long-term value for both members and franchisees. Franchisees are expected to adapt to these changes to remain in compliance.
This requirement ensures that all franchisees operate in alignment with C12 Group's standards and practices, contributing to the overall consistency and quality of the franchise system. It also allows C12 Group to evolve and improve its business model, which may benefit franchisees in the long run. However, franchisees should be aware that they must be willing to adapt to changes implemented by C12 Group to maintain their good standing and ensure the renewal of their franchise agreement.