Under what condition might the litigation location for C12 Group franchisees differ from Texas?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| u. Dispute resolution by arbitration or mediation | XII, Exhibit F | All matters can be appealed up through C12’s defined three-step dispute resolution process which culminates in Christian arbitration pursuant to which the parties engage three Bible-believing Christian arbitrators as follows: one selected by the franchisee, one selected by C12, and one selected by such two arbitrators. The remedy recommended by the arbitration panel will be binding and final with no further recourse by either party. Subject to state law. |
|---|---|---|
| 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). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–41)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, litigation involving C12 Group franchisees must generally be conducted in Texas. However, this is not absolute. The FDD indicates that the location of litigation can differ from Texas if Exhibit F of the FDD, which contains certain State Disclosures, specifies otherwise. This is also subject to applicable state law, meaning that state-specific regulations could override the standard requirement for Texas to be the litigation forum.
For a prospective C12 Group franchisee, this means that the standard litigation location is Texas, which could require travel and associated costs if a dispute arises. However, it is crucial to carefully review Exhibit F and understand the specific state disclosures applicable to your state. These disclosures might stipulate a different litigation forum.
It is also important to be aware of any state laws that could impact the choice of forum. Prospective franchisees should consult with a legal professional to fully understand their rights and obligations regarding dispute resolution and litigation, taking into account both the franchise agreement and any relevant state laws. This due diligence can help avoid surprises and ensure that franchisees are prepared for potential legal challenges.