Under what circumstances does C12 Group have the option to purchase a franchisee's business?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee who meets all of Franchisor's ongoing training requirements (a "C12 Area Chair"). If circumstances should ever change, and such person is no longer both an owner and officer of Franchisee and Franchisee does not have a suitable replacement candidate for the role of C12 Area Chair (contingent on Franchisor's approval), then Franchisor may, in its sole discretion, terminate this Agreement or allow the Franchised Business to be transferred or sold to an approved third-party.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group does not have the explicit option to purchase a franchisee's business. However, C12 Group has the option to terminate the agreement or allow the franchise to be transferred or sold to an approved third party if the franchisee no longer has a qualified C12 Area Chair who is both an owner and officer. This decision is at C12 Group's sole discretion.
This stipulation is important for prospective franchisees to consider, as it highlights the significance of maintaining qualified leadership within the franchise. If the designated C12 Area Chair leaves the business and a suitable replacement cannot be found and approved by C12 Group, the franchisee could face the possibility of losing their franchise.
Unlike some franchise systems where the franchisor might directly buy back a struggling or non-compliant unit, C12 Group appears to prefer either termination or facilitating a transfer to a new franchisee. This approach may reflect C12 Group's focus on maintaining a consistent brand identity and operational standards through carefully selected and trained franchisees.