Are the termination provisions in the C12 Group franchise agreement subject to state and federal law?

According to the 2025 C12 Group Franchise Disclosure Document, the termination provisions within the franchise agreement are subject to both state and federal laws. Specifically, the agreement states that the provisions regarding termination by the franchisor are subject to these laws. This means that while C12 Group outlines certain conditions under which they can terminate the agreement, these conditions must comply with applicable state and federal regulations.

Several state-specific addenda included in the FDD further clarify how state laws can modify the general termination terms. For example, the North Dakota addendum references Section 51-19-10 of the North Dakota Franchise Investment Law, which prohibits a franchisee from waiving their right to a jury trial, superseding any conflicting provisions in the franchise agreement if North Dakota law governs. Similarly, the Washington addendum indicates that the Washington Franchise Investment Protection Act may supersede the franchise agreement regarding termination and renewal. The Minnesota addendum 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.

These stipulations are important for prospective C12 Group franchisees because they highlight that the standard franchise agreement is not the final word on termination rights and obligations. State and federal laws can provide additional protections or impose different requirements than what is initially presented in the agreement. Franchisees should be aware of the laws in their specific state and how those laws might affect the termination process. Consulting with a legal professional experienced in franchise law is advisable to fully understand these rights and obligations.