Does the provided text specify the term length for C12 Group contracts?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
The Term of this Agreement begins upon the execution hereof and continues through December 31st of the calendar year following the year in which this Agreement is executed. For example, if this Agreement is executed on May 31, 2024, the Term shall expire on December 31, 2025. 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. There is no additional renewal fee associated with these annual renewals. If there are material updates or changes, Franchisor may present Franchisee with a consent letter incorporating such terms, which shall act to renew this Agreement for another calendar year. Franchisor shall notify Franchisee of material changes to Royalty Fees and minimum membership fees (as the basis for calculating Royalty Fees) at least twelve (12) months before the expiration of the Term or any Renewal Term.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the initial term of the Franchise Agreement begins upon execution and extends through December 31st of the following calendar year. For instance, if the agreement is signed on May 31, 2024, the initial term concludes on December 31, 2025. This means the initial term can vary in length depending on the execution date.
Following the initial term, the agreement is designed to be renewed annually for additional one-year terms. These renewals are contingent upon several factors: both C12 Group and the franchisee must agree to the renewal, the franchisee must remain actively involved in operating the franchised business, and the franchisee must be in good standing, which includes compliance with the agreement's terms and any updates to C12 Group's business model or Operations Manual.
C12 Group retains the discretion to modify its business model, believing such changes will enhance the franchise system's value. Franchisees will be notified of any material changes to royalty fees and minimum membership fees at least 12 months before the term's expiration. There are no additional renewal fees associated with these annual renewals; however, C12 Group may present a consent letter incorporating new terms, which, upon signing, renews the agreement for another calendar year.