According to the Cicis Franchise Agreement, what constitutes an 'Owner'?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 6. | necessary). | Section 5.C (Ownership): | | | | | | The following lists the full name of each Person who is one of your | | | | Owners, and fully describes the nature of each owner's interest (attach additional pages if | | |
(8) any agreements among your Owners must require such Owners to consent to the transfer of ownership interests in you to us or our designee upon the exercise of any rights of first refusal or purchase options we have under this Agreement;
(10) all your Owners will execute the Guaranty and Assumption Agreement ("Guaranty") attached as Attachment B hereto;
(1) Prior to the execution of this Agreement, you must designate and at all times maintain an Owner who is a natural person approved by us to serve as your Managing Owner ("Managing Owner"), with primary responsibility for the supervision of your activities under this Agreement.
Your initial Managing Owner is identified on Attachment A.
Unless otherwise approved by u
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the term 'Owner' refers to individuals or entities that hold an ownership interest in the franchisee. Attachment A of the Franchise Agreement requires the franchisee to list the full name of each person who is one of the Owners and fully describes the nature of each owner's interest. This information is crucial for Cicis to understand the ownership structure of its franchisees.
Furthermore, the Franchise Agreement stipulates certain obligations for these Owners. All Owners are required to execute a Guaranty and Assumption Agreement, as detailed in Attachment B of the Franchise Agreement. This Guaranty ensures that the Owners are personally liable for the franchisee's obligations under the agreement. Additionally, any agreements among the Owners must require them to consent to the transfer of ownership interests to Cicis or its designee if Cicis exercises any rights of first refusal or purchase options.
Cicis also requires the franchisee to designate and maintain a Managing Owner, who must be a natural person approved by Cicis. This Managing Owner has primary responsibility for supervising the franchisee's activities under the Franchise Agreement. The initial Managing Owner is identified on Attachment A. The Managing Owner and/or Operator must be approved by Cicis, and they must continue to meet Cicis's qualifications and standards during their service. They must also successfully complete Cicis's initial training program. This ensures that the restaurant is properly managed and operated according to Cicis's standards.