What outstanding amounts must be paid before a C12 Group franchise transfer can be approved?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ransfer fee. In addition, if the transferee acquiring the entire Franchised Business is not an existing C12 franchisee, they must pay Franchisor a training fee. The transfer is deemed approved only after the transferee has been deemed qualified to serve by Franchisor in its sole discretion, the transfer fee of $6,000 has been paid to Franchisor, all outstanding amounts owed by Franchisee to Franchisor have been paid in full, Franchisee (and its owners, if applicable) has executed a general re
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, before a franchise transfer can be approved, all outstanding amounts owed by the franchisee to C12 Group must be paid in full. This requirement ensures that the franchisor receives all due payments before a new franchisee takes over the business.
In addition to settling any outstanding debts, the franchisee (and its owners, if applicable) must execute a general release of C12 Group, which essentially means they waive any claims against the franchisor. A new franchise agreement must also be signed with the transferee if more than fifty percent (50%) of the franchised business is being transferred.
Furthermore, the transferee must be deemed qualified by C12 Group, at their discretion, and pay a transfer fee of $6,000. These conditions collectively aim to protect the C12 Group's interests, maintain the integrity of the franchise system, and ensure a smooth transition for both the franchisor and the new franchisee.