Are there any exceptions to the release provided to The C12 Group, LLC regarding franchise laws?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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[Signatures on following page]
The C12 Group, LLC Print Name: Print Name: Its: Its: The undersigned does hereby acknowledge receipt of this addendum.
EXHIBIT A-1
GENERAL RELEASE FORM
| THE UNDERSIGNED ("Franchisee"), effective as of | , 2 | , for good and valuable |
|---|---|---|
| consideration, the receipt and sufficiency of which are hereby acknowledged, on behalf of itself, its | ||
| successors, assigns, heirs, and affiliates, hereby forever and irrevocably releases The C12 Group, LLC | ||
| ("Franchisor"), its members, managers, officers, employees, and agents, and their respective successors, | ||
| assigns, heirs, and affiliates, from any and all | liabilities and obligations, known and unknown, contingent | |
| and non-contingent, and liquidated and non-liquidated, arising at any time with respect to that certain | ||
| Franchise Agreement between the undersigned and Franchisor dated onor | about | , |
| 2 | ||
| , as amended (the "Franchise | ||
| Agreement"). | ||
| The provisions hereof shall not apply to any liability arising with respect to the franchise laws under the | ||
| Maryland Franchise Registration and Disclosure Law. | ||
| This Release is inapplicable with respect to claims arising under the Washington Franchise Investment | ||
| Protection Act, RCW 19.100, and the rules adopted thereunder. | ||
| [Signature of Franchisee] |
EXHIBIT B FINANCIAL STATEMENTS
THE C12 GROUP, LLC
Audited Financial Statements
December 31, 2024
THE C12 GROUP, LLC Table of Contents December 31, 2024 and 2023
| Audited Financial Statements | Page |
|---|---|
| T-111 | q |
| Independent Auditor's Report | 1 |
| Balance Sheets | 3 |
| Statements of Operations | 5 |
| Statements of Changes in Members' Equity | 6 |
| Statements of Cash Flows | 7 |
| Notes to Audited Financial Statements | 8 |
Member of the AICPA & TXCPA.
Registered with Public Company Accounting Oversight Board.
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors The C12 Group, LLC San Antonio, Texas
Opinion
We have audited the accompanying financial statements of The C12 Group, LLC (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, changes in members' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The C12 Group, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, the release provided to The C12 Group, LLC by the franchisee does not apply to liabilities arising with respect to franchise laws under the Maryland Franchise Registration and Disclosure Law. Additionally, the release is inapplicable regarding claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. These exceptions mean that even if a franchisee signs a general release, they still retain their rights to pursue claims related to franchise law violations in Maryland and Washington.
Furthermore, Minnesota law includes additional protections for franchisees. Minnesota statutes prohibit C12 Group from requiring litigation to be conducted outside of Minnesota. The franchise agreement cannot reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by the laws or the jurisdiction.
North Dakota also provides franchisees with certain protections. According to the North Dakota addendum, all arbitration or mediation must take place at a location agreeable to all parties involved and may not be remote from the franchisee's place of business. Franchisees are not required to consent to the jurisdiction of the courts in Texas and may fall under the jurisdiction of the courts in North Dakota. The agreement shall be governed according to the laws of the State of North Dakota or a non-specified State agreed to by all parties. North Dakota Franchise Investment Law prohibits a franchisee from waiving his rights to a jury trial.