Are there any exceptions to the requirement that litigation must be conducted in Texas for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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). |
MINNESOTA ADDENDUM TO THE FRANCHISE AGREEMENT
Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit C12 from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Franchise Disclosure Document or agreement can abrogate or reduce any of Your rights as provided for in Minnesota Statutes, Chapter 80C, or Your rights to any procedure, forum, or remedies provided for by the laws or the jurisdiction.
NORTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
With respect to Item 17(v) of the Disclosure Document and Section XII of the Franchise Agreement, in regard to Section 51-19-09 of the North Dakota Franchise Investment Law, 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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, while litigation must generally be conducted in Texas, there are exceptions for certain state disclosures as outlined in Exhibit F. Specifically, the Minnesota Addendum to the Franchise Agreement states that C12 Group cannot require litigation to be conducted outside of Minnesota. The addendum also clarifies that nothing in the Franchise Disclosure Document or agreement can reduce a franchisee's rights as provided by Minnesota law, including rights to procedures, forums, or remedies.
Similarly, the North Dakota Addendum to the Franchise Agreement specifies that franchisees are not required to consent to the jurisdiction of courts in Texas and may fall under the jurisdiction of North Dakota courts. This addendum also stipulates that arbitration or mediation must occur at a location agreeable to all parties and not remote from the franchisee's place of business, further modifying the standard Texas litigation requirement.
These state-specific addenda indicate that the standard litigation terms can be superseded by state franchise laws, offering franchisees in Minnesota and North Dakota the possibility of litigating closer to their businesses and under their state's legal framework. Prospective franchisees should carefully review Exhibit F and any state-specific addenda to understand their rights regarding choice of forum and applicable laws.