What is the C12 Group's process if a franchisee is not making sufficient progress on a Remediation Plan?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
in its sole discretion whether Franchisee has sufficiently demonstrated the ability to launch and successfully operate a C12 Franchised Business. If Franchisor determines that Franchisee has not satisfactorily completed New Chair Training, Franchisor will give Franchisee the option to either (i) complete a Remediation Plan or (ii) terminate the Franchise Agreement. If Franchisee elects to complete a Remediation Plan, Franchisor will specify actions that Franchisee must take and other requirements for Franchisee to meet in order to pass New Chair Training or, at Franchisor's option, Franchisee may attend a subsequent Training Week provided that Franchisee pay the additional cost of $2,500 plus travel, hotel, and meals. If Franchisee elects to terminate the Franchise Agreement, Franchisor will refund the Franchise Fee and any unspent portions of the Prepaid Marketing Fund, subject to Franchisee's agreement to remain bound by the confidentiality and non-competition obligations Franchisee previously agreed to under this Agreement before attending New Chair Training. Additionally, if Franchisor determines Franchisee is not making sufficient progress on a Remediation Plan, Franchisor reserves the right to give Franchisee written notice of termination of the Franchise Agreement. If Franchisor terminates the Franchise Agreement as provided for in this
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, if a franchisee does not satisfactorily complete the New Chair Training, C12 Group will offer the franchisee the option to either complete a Remediation Plan or terminate the Franchise Agreement. If the franchisee chooses to complete a Remediation Plan, C12 Group will specify the actions and requirements needed to pass the New Chair Training. Alternatively, the franchisee can attend a subsequent Training Week, provided they pay an additional cost of $2,500, plus travel, hotel, and meals.
However, if C12 Group determines that the franchisee is not making sufficient progress on the Remediation Plan, C12 Group reserves the right to provide written notice of termination of the Franchise Agreement. If the Franchise Agreement is terminated under these circumstances, C12 Group will only refund any unspent portions of the Prepaid Marketing Fund. All other franchise and training fees are non-refundable.
This policy highlights the importance of adequate preparation and performance during the initial training phase. The financial implications of failing to meet the requirements of the Remediation Plan are significant, as the franchisee risks losing the franchise and forfeiting most of the fees paid, except for any unspent Prepaid Marketing Funds. This is a stricter policy than some franchises, which may offer more extensive support or a longer period to improve performance before termination.