What is the C12 Group's unilateral right regarding Franchise Agreement termination for nonperformance?

According to the 2025 C12 Group Franchise Disclosure Document, C12 Group retains the unilateral right to terminate a Franchise Agreement due to nonperformance. However, C12 Group must first provide the franchisee with a 90-day period to correct the nonperformance issues. This means that if a franchisee is not meeting the required performance standards, C12 Group cannot immediately terminate the agreement.

This 90-day cure period is a crucial aspect for prospective franchisees to understand. It provides an opportunity for franchisees to address any shortcomings in their business operations and avoid termination. Franchisees should use this time to identify the reasons for their underperformance, develop a plan to improve, and implement that plan effectively.

It is important to note that the specific performance standards that could trigger this termination clause are related to target market penetration. C12 Group expects franchisees to achieve certain levels of market penetration within specified timeframes. Failure to meet these targets, after the 90-day cure period, could result in the termination of the Franchise Agreement. This highlights the importance of understanding the Baseline Target for the territory and diligently working towards achieving it.