Under what circumstances can the C12 Group franchisor terminate the agreement immediately without an opportunity to cure?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
iving 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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, C12 Group may terminate the franchise agreement immediately, without providing an opportunity to cure, under specific circumstances. These include if the franchisee or any member or owner of the franchisee receives a criminal conviction, enters a guilty plea, or enters a plea of nolo contendere with respect to any felony or crime of moral turpitude. Immediate termination can also occur if the franchisee abandons the franchised business or demonstrates a sustained inability to productively engage in the franchised business.
Further reasons for immediate termination include an unapproved transfer of franchise responsibility or any ownership interest in the franchisee if the franchisee is an entity. Filing for bankruptcy or making an assignment for the benefit of creditors also constitute grounds for immediate termination. Additionally, C12 Group can terminate the agreement immediately if the franchisee or any member or owner of the franchisee displays unrepentant behavior that undermines the unity of those engaged in C12 as Area Chairs and members.
Moreover, breaches of "above reproach" conduct, including moral turpitude, whether legal or illegal, are material grounds for immediate termination of the agreement. These stipulations are subject to state and federal law, meaning that specific legal requirements in certain jurisdictions may modify or restrict these termination rights. Prospective franchisees should carefully consider these conditions, as they represent significant risks that could lead to the immediate loss of their franchise.