According to the Cicis franchise agreement, what constitutes 'permanent disability'?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) In case of your or your Managing Owner's death, your or their interests, as applicable, in you, this Agreement and your Restaurant must be transferred to a third party we approve within 12 months after the date of death or permanent disability. If you or, as applicable, your Managing Owner should become permanently disabled, we may, in our sole discretion, require such interests to be transferred to a third party in accordance with the conditions described in this Section 13.D within six (6) months after notice to you. "Permanent disability" means any physical, emotional, or mental injury, illness, or incapacity which would prevent a person from performing the obligations set forth in this Agreement or in the guaranty made part of this Agreement for at least 90 consecutive days and from which condition recovery within 90 days from the date of determination of disability is unlikely. Permanent disability will be determined by a licensed practicing physician we select (and at our costs), upon examination of the person; or if the person
refuses to submit to an examination, then such person automatically will be deemed permanently disabled as of the date of such refusal for the purpose of this Section 13.D.
- (2) You or your representative must promptly notify, in writing, us of your or your Managing Owner's death or permanent disability.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the franchise agreement defines "permanent disability" as a physical, emotional, or mental injury, illness, or incapacity that prevents a person from fulfilling their obligations under the Franchise Agreement or any guaranty made part of it. This condition must last for at least 90 consecutive days, with recovery within another 90 days being unlikely.
The determination of permanent disability is made by a licensed practicing physician selected by Cicis, at Cicis' cost, after examining the person in question. However, if the person refuses to undergo the examination, they will automatically be deemed permanently disabled as of the date of refusal for the purposes of the agreement.
This definition is important because if the franchisee or their Managing Owner becomes permanently disabled, Cicis has the right to require the interests in the franchise to be transferred to a third party within six months after notice is given. This transfer must comply with the conditions outlined in Section 13.D of the franchise agreement. The franchisee or their representative is required to promptly notify Cicis in writing of the permanent disability.