Does state law affect the cure period for a C12 Group franchisee's default?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless stated otherwise in this Agreement, and subject to state law, Franchisee shall have thirty (30) days after receiving notice of default from Franchisor in which to cure any default arising from Franchisee's failure to perform its obligations under this Agreement.
If Franchisee fails to cure any default within thirty (30) days after receiving notice from Franchisor, Franchisor may terminate this Agreement upon notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, state laws can indeed affect the cure period a franchisee has to remedy a default. While the standard agreement generally provides a 30-day cure period after notice of default, this is explicitly stated to be "subject to state law." This means that specific state franchise laws may mandate a different cure period, potentially longer or shorter, which would supersede the terms outlined in the standard C12 Group franchise agreement.
For example, the Minnesota Addendum to the Franchise Agreement states that C12 Group will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement.
Furthermore, the Washington Addendum indicates that the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) may supersede the franchise agreement, including areas of termination and renewal. This highlights the importance of franchisees understanding the specific franchise laws in their state, as these laws can provide additional protections or impose different requirements than those in the standard franchise agreement. Prospective franchisees should consult with a legal professional to understand how state laws may impact their rights and obligations under the C12 Group franchise agreement.