What is the purpose of the C12 Group providing the disclosure document to potential franchisees?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
al statements were available to be issued.
Sell of C12 Atlanta
Prior to December 31, 2022, The Company entered into a Letter of Intent (LOI) to sell C12 Atlanta, LLC. The sell was executed and closed on January 31, 2023.
EXHIBIT H
RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain English. Read this disclosure document and all agreements carefully.
If the C12 Group, LLC offers you a franchise, it must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
New York and Rhode Island require that we provide you with this disclosure document at the earlier of the first personal meeting or ten business days before you sign a binding agreement with, or make payment to, us or one of our affiliates in connection with the proposed sale. Michigan requires that we provide you with this disclosure document ten business days before you sign a binding agreement with, or make payment to, it or one of its affiliates in connection with the proposed sale.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group provides the disclosure document to potential franchisees to summarize the franchise agreement and other relevant information in plain English. The document is intended to be read carefully by prospective franchisees, along with all other agreements, before making any commitments.
The FDD states that C12 Group must provide the disclosure document to a potential franchisee at least 14 calendar days before they sign a binding agreement or make any payment related to the franchise. However, New York and Rhode Island require the disclosure document to be provided earlier, specifically at the first personal meeting or ten business days before signing an agreement or making a payment. Michigan requires the disclosure document ten business days before you sign a binding agreement with, or make payment to it or one of its affiliates in connection with the proposed sale.
The FDD also clarifies that failure to deliver the disclosure document on time, or if the document contains false, misleading, or omits material information, it may constitute a violation of federal and state laws. In such cases, the potential franchisee is advised to report this to the Federal Trade Commission and the relevant state agency listed in Exhibit C of the disclosure document. This ensures that potential franchisees have sufficient time and accurate information to make informed decisions and are aware of their rights and recourses.