What are the potential increased expenses for a C12 Group franchisee if they have to change to alternative trademarks?

According to the 2025 C12 Group Franchise Disclosure Document, a franchisee may face increased expenses if they have to change to alternative trademarks. This situation could arise if C12 Group's right to use its trademarks is challenged. The FDD indicates that C12 Group does not have a federal registration for two pending trademarks, which means the trademarks lack the full legal protection of federally registered trademarks. Currently, there are opposition proceedings regarding these two pending trademarks. While the parties are working toward a settlement, the risk remains that C12 Group might be forced to switch to alternative trademarks.

For a prospective C12 Group franchisee, this means there is a potential financial risk associated with rebranding. If a change to alternative trademarks becomes necessary, the franchisee would likely incur costs related to updating signage, marketing materials, and other branded items. These costs are in addition to the initial franchise fees and ongoing operational expenses.

While the FDD does not provide a specific estimate of these potential increased expenses, it is important for prospective franchisees to consider this risk and discuss it with C12 Group. Understanding the potential scope of these costs can help franchisees better prepare for unforeseen financial burdens and make informed decisions about their investment. Franchisees should also inquire about C12 Group's plans to support franchisees in the event of a required trademark change.