In New York, has C12 Group pleaded nolo contendere to a felony charge?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion, or misappropriation of property; or unfair or deceptive practices or comparable allegations.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to the 2025 FDD, Item 23 includes additional information for prospective C12 Group franchisees in New York. Specifically, it states that, except as otherwise provided, neither C12 Group, its predecessors, individuals identified in Item 2, nor affiliates offering franchises under C12 Group's principal trademark have pleaded nolo contendere to a felony charge. This statement applies unless exceptions are noted elsewhere in the document. Item 2 of the FDD typically discloses the backgrounds of key personnel associated with the franchise, so it is important to review that item.
This disclosure indicates that C12 Group aims to comply with New York's franchise regulations, which require franchisors to disclose any history of criminal activity, particularly felonies. A "nolo contendere" plea, also known as "no contest," means that the defendant accepts conviction but does not admit guilt. This kind of plea can have similar consequences to a guilty plea, so it is important for prospective franchisees to know whether C12 Group or its key people have a history of such pleas.
Prospective franchisees should carefully review Item 3 of the FDD, along with Item 2, to ensure that there are no undisclosed exceptions to this statement. If any exceptions exist, franchisees should evaluate the nature and severity of the charges and how they might affect C12 Group's ability to support its franchisees. It is also advisable to consult with a franchise attorney to fully understand the implications of any past criminal history.