Under what conditions does C12 Group permit third-party investors in a franchise?

According to C12 Group's 2025 Franchise Disclosure Document, the company may, at its discretion, allow third-party investors, silent equity positions, and non-operating ownership in a franchise. However, this is contingent upon C12 Group reviewing and approving all proposed parties and agreements.

For a prospective franchisee, this means that while it may be possible to bring in outside investors or structure the ownership in a way that includes silent partners, it is not guaranteed. C12 Group retains the right to vet and approve all parties involved, ensuring they align with the company's standards and business practices. This approval process is a critical step for anyone considering such an arrangement.

It's important to note that C12 Group's approval is not merely a formality. They will likely assess the financial stability, business acumen, and overall suitability of any proposed investor. This level of scrutiny is common in franchising to protect the brand and ensure that all stakeholders are committed to the success of the franchise. Franchisees should be prepared to provide comprehensive information about potential investors and be transparent about the proposed ownership structure.

Therefore, if a prospective C12 Group franchisee is considering involving third-party investors, it is crucial to engage with C12 Group early in the process to understand their specific requirements and approval criteria. This proactive approach can help avoid potential roadblocks and ensure a smooth path to franchise ownership.