Under what conditions can a C12 Group franchise be transferred to C12?
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). |
| w. Choice of Law | XII | Texas law will govern (subject to applicable state law). |
| C12 Franchisees | ||
| Total Revenue | ||
| January 1, 2024 to December 31, 2024 | ||
| Total Revenue | $44,250,036 | Reported by 65 franchisees. |
| m. Conditions for franchisor approval of transfer | X | New franchisee qualifies, transfer fee of $6,000 paid, purchase agreement approved, training completed, all outstanding accounts receivable satisfied, release signed by you and current agreement signed by new franchisee (also see r. below). |
| n. Franchisor's right of | Not Applicable | C12 does not require right of first refusal, but must |
| first refusal to acquire | approve owner/operator and may, on occasion, take | |
| franchisee's business | ownership if necessary. | |
| o. Franchisor's option to purchase franchisee's business | X | If you ask C12 to purchase your business or you have not actively tended to the Territory for 60 days or more, C12 has the right to purchase or, in certain instances, regain the rights to the Territory at no cost. Subject to state law. |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, C12 Group has the right to purchase a franchisee's business under specific circumstances. If a franchisee asks C12 Group to purchase their business, or if the franchisee has not actively managed the territory for 60 days or more, C12 Group has the right to purchase the business or, in certain instances, regain the rights to the territory at no cost. This is subject to state law.
This provision gives C12 Group a mechanism to ensure the continued operation and management of a franchise territory. If a franchisee is unable or unwilling to manage their territory, C12 Group can step in to either purchase the business or reclaim the territory rights. This protects the C12 Group brand and ensures that members in the territory continue to receive services.
For a prospective franchisee, this means that C12 Group has a contingency plan in place if the franchisee is unable to manage the business. However, it also means that the franchisee could lose their business or territory rights if they are not actively managing the business. It is important for prospective franchisees to understand these conditions and to have a plan in place for managing their business effectively.