Does the text mention any cure periods for C12 Group contracts?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- Termination by Franchisor Without Opportunity to Cure. Franchisor may terminate this Agreement immediately, upon written notice to Franchisee, should any of the following occur: (i) Franchisee or any member or owner of Franchisee receiving a criminal conviction, entering a guilty plea, or entering a plea of nolo contendere with respect to any felony or crime of moral turpitude; (ii) the abandonment of the Franchised Business or sustained inability of Franchisee to productively engage in the Franchised Business; (iii) an unapproved transfer of Franchise responsibility or any ownership interest(s) in Franchisee if Franchisee is an entity; (iv) Franchisee's filing of bankruptcy or making of an assignment for the benefit of creditors; and/or (v) unrepentant behavior by Franchisee or any member or owner of Franchisee that strikes at the unity of those engaged in C12 as Area Chairs and members. In the event that the franchisee is an entity, Franchisor may also exercise its termination rights pursuant to this section in the event that any of the foregoing shall occur with respect to any owner of such entity. The provisions under this Section are subject to state and federal law.
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- Alternatives to Termination by Franchisor. Franchisor may address by other means any breach of this Agreement that has not been satisfactorily cured by Franchisee within the applicable cure period.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a franchisee typically has an opportunity to cure a default before the franchise agreement is terminated. Specifically, if a C12 Group franchisee fails to correct a default, they are given thirty days after receiving notice from C12 Group to resolve the issue. If the franchisee does not cure the default within this 30-day period, C12 Group has the right to terminate the agreement.
However, there are exceptions where C12 Group can terminate the agreement immediately without providing an opportunity to cure. These situations include instances such as a franchisee or owner receiving a criminal conviction, abandoning the business, an unapproved transfer of franchise responsibility, filing for bankruptcy, or engaging in unrepentant behavior that disrupts the unity of C12 Group.
Furthermore, the FDD includes addenda for franchisees in Minnesota and North Dakota. For franchises governed by Minnesota law, C12 Group must provide 90 days' notice of termination, with 60 days to cure, except in certain specified cases. This highlights that cure periods and termination conditions can vary based on state laws, so prospective franchisees should pay close attention to any state-specific addenda in the franchise agreement.