According to the Cicis agreement, what is the recourse for claims arising between the parties?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your owners agree that your and their sole recourse for claims arising between the parties shall be against us or our successors and assigns. You and your owners agree that our and our Affiliates' members, managers, shareholders, directors, officers, employees, and agents shall not be personally liable nor named as a party in any action between us or our Affiliates and you or your owners.
WE AND YOU AGREE THAT ANY PROCEEDING WILL BE CONDUCTED ON AN INDIVIDUAL BASIS AND THAT ANY PROCEEDING BETWEEN US AND ANY OF OUR AFFILIATES, OR OUR AND THEIR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, AGENTS, AND EMPLOYEES, ON THE ONE HAND, AND YOU OR YOUR OWNERS, GUARANTORS, AFFILIATES, AND EMPLOYEES, ON THE OTHER HAND, MAY NOT BE: (I) CONDUCTED ON A CLASS-WIDE BASIS, (II) COMMENCED, CONDUCTED OR CONSOLIDATED WITH ANY OTHER PROCEEDING, (III) JOINED WITH ANY CLAIM OF AN UNAFFILIATED THIRD-PARTY, OR (IV) BROUGHT ON YOUR BEHALF BY ANY ASSOCIATION OR AGENT.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, franchisees and their owners have recourse only against Cicis or its successors and assigns for claims arising between the parties. Franchisees and their owners cannot hold Cicis' members, managers, shareholders, directors, officers, employees, and agents personally liable or name them as parties in any action. This means a franchisee would need to pursue any legal claims directly against the Cicis corporation rather than individual people associated with the company.
Furthermore, any claims arising from the franchise agreement or the relationship between Cicis and the franchisee must be initiated within one year from when the party asserting the claim knew or should have known about the facts giving rise to the claim. This limitation does not apply to claims arising from the franchisee's non-payment or underpayment of amounts owed to Cicis. This is a shorter time frame than might otherwise be allowed by law, so franchisees need to be aware of this limitation.
Proceedings between Cicis and its affiliates, shareholders, officers, directors, agents, and employees, and the franchisee, their owners, guarantors, affiliates, and employees, must be conducted on an individual basis. Class action lawsuits, consolidated proceedings, or joined claims with unaffiliated third parties are not permitted. Additionally, associations or agents cannot bring claims on behalf of the franchisee. This clause ensures that any legal disputes are handled individually between the parties involved, preventing large-scale or collective legal actions.