Does the text mention any assignment conditions for C12 Group contracts?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
X. Transfer, Sale, or Assignment
Recognizing the value of consistency and standardization across franchisees in fostering the goodwill and reputation of the C12 franchise system and Franchisor and the desire for service continuity to C12 members within Franchisee's Territory, Franchisor and Franchisee agree as follows:
Franchisor shall have the right to approve all sales and transfers of the Franchised Business or any interest in Franchisee if Franchisee is an entity.
A transfer shall be deemed to occur when more than fifty percent (50%) of the equity ownership of Franchisee, as of the date this Franchise Agreement, is sold or transferred to a third-party.
Such a sale or transfer will result in Franchisee and/or the transferee, as applicable, executing Franchisor's then-current form of franchise agreement, which may contain terms materially different than the Franchise Agreement.
Franchisor may condition its consent to any transfer based on the evaluation of successor or transferee qualifications, business plan viability (including recognition of Franchise purchase terms), the transferee's successful completion of New Chair Training and payment of a $6,000 transfer fee.
In addition, if the transferee acquiring the entire Franchised Business is not an existing C12 franchisee, they must pay Franchisor a training fee.
The transfer is deemed approved only after the transferee has been deemed qualified to serve by Franchisor in its sole discretion, the transfer fee of $6,000 has been paid to Franchisor, all outstanding amounts owed by Franchisee to Franchisor have been paid in full, Franchisee (and its owners, if applicable) has executed a general release of Franchisor and a new franchise agreement has been signed with the transferee if more than fifty percent (50%) of the Franchised Business is transferred.
- a.
If Franchisee suspends, for temporary reasons out of Franchisee's control (e.g., health, disability or death), normal operations of the Franchised Business for a period of sixty (60) days or more, Franchisor will attempt to assist in overseeing the continuation of the Franchised Business through a transition period not to exceed six (6) months.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the franchisor has the right to approve all sales and transfers of the franchised business or any interest in the franchisee if the franchisee is an entity. A transfer is considered to occur when more than 50% of the equity ownership of the franchisee is sold or transferred to a third party. Such a sale or transfer will require the franchisee and/or the transferee to execute C12 Group's current form of franchise agreement, which may contain materially different terms than the original agreement.
C12 Group may condition its consent to any transfer based on an evaluation of the successor or transferee's qualifications, the viability of their business plan (including recognition of franchise purchase terms), successful completion of New Chair Training, and payment of a $6,000 transfer fee. If the transferee acquiring the franchised business is not an existing C12 Group franchisee, they must also pay a training fee.
The transfer is only deemed approved after the transferee is qualified by C12 Group in its sole discretion, the $6,000 transfer fee is paid, all outstanding amounts owed by the franchisee to C12 Group are paid in full, the franchisee executes a general release of C12 Group, and a new franchise agreement is signed with the transferee if more than 50% of the franchised business is transferred. Additionally, if the franchisee suspends normal operations of the franchised business for 60 days or more due to reasons out of their control (e.g., health, disability, or death), C12 Group will attempt to assist in overseeing the continuation of the franchised business through a transition period not exceeding six months.