What agreement are direct and indirect owners of a Cicis franchisee required to sign?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Your direct and indirect owners will be required to sign an agreement (the current form of which is attached as Attachment B to the Franchise Agreement and the Area Development Agreement) pursuant to which they each personally assume and guarantee your obligations under the Franchise Agreement and the Area Development Agreement (each a "Guaranty"). If the spouses of your owners are not themselves owners of you, we will require them to sign the Guaranty solely to acknowledge that you are signing it to bind yourself and any marital property. A non-owner spouse is not otherwise obligated under the Guaranty.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 6–8)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, direct and indirect owners of a Cicis franchise are required to sign a Guaranty. This agreement ensures that they personally assume and guarantee the franchisee's obligations under both the Franchise Agreement and the Area Development Agreement. The current form of this agreement is attached as Attachment B to both the Franchise Agreement and the Area Development Agreement.
This requirement means that the personal assets of the direct and indirect owners are at risk should the Cicis franchise fail to meet its financial or contractual obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and demonstrates the owners' commitment to the success of the franchise.
Furthermore, if the spouses of the owners are not themselves owners, Cicis requires them to sign the Guaranty as well. However, the spouse's obligation is limited to acknowledging that the owner is signing the agreement to bind themselves and any marital property. The non-owner spouse is not otherwise obligated under the Guaranty, meaning their separate assets are not at risk. This spousal signature requirement is intended to ensure that marital assets are also available to cover the franchise's obligations, but it protects the non-owner spouse's individual property.