What state's law governs the C12 Group franchise agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| u. Dispute resolution by arbitration or mediation | XII, Exhibit F | All matters can be appealed up through C12’s defined three-step dispute resolution process which culminates in Christian arbitration pursuant to which the parties engage three Bible-believing Christian arbitrators as follows: one selected by the franchisee, one selected by C12, and one selected by such two arbitrators. The remedy recommended by the arbitration panel will be binding and final with no further recourse by either party. Subject to state law. |
|---|---|---|
| v. Choice of forum | XII, Exhibit F | Litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures (subject to applicable state law). |
| w. Choice of Law | XII | Texas law will govern (subject to applicable state law). |
| C12 Franchisees | ||
| Total Revenue | ||
| January 1, 2024 to December 31, 2024 | ||
| Total Revenue | $44,250,036 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by Texas law. However, this is subject to applicable state law, meaning that certain state-specific regulations may override the general provision that Texas law applies. This is a fairly common practice in franchising, as state laws often have specific requirements for franchise agreements and operations.
Specifically, the FDD indicates that litigation must be conducted in Texas unless otherwise stated in Exhibit F for certain State Disclosures, again subject to applicable state law. This means that if a franchisee brings a lawsuit against C12 Group, or vice versa, the case would typically be heard in Texas, unless the state where the franchisee is located has a law requiring the case to be heard in that state. Franchisees should carefully review Exhibit F and any applicable state laws to understand their rights and obligations regarding choice of law and forum.
It is important for prospective C12 Group franchisees to understand which laws will govern their franchise agreement, as this can impact their legal rights and obligations. Franchisees should consult with an attorney to understand the implications of the choice of law and forum provisions in the franchise agreement, as well as any state-specific laws that may apply.