What agreement must all Owners of a Cicis franchise execute?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ffiliates and us or any of our affiliates, and there must not have been any such defaults during the term of any such agreements; - (c) the transferor and its Owners (if applicable) must execute a general release, in form and substance satisfactory to us, of any and all claims, however arising, against us, our affiliates, and the officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees of each from the beginning of time to the date of transfer;
- (d) the transferee must enter into a written agreement, in form and substance satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants, and agreements contained in this Agreement; and, if the transferee is a legal entity, each of the transferee's owners as we designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
- (e) the transferee must execute, for a term ending on the expiration date of this Agreement and with such renewal terms as may be provided by this Agreement, our thencurrent standard form of franchise agreement and all other ancillary agreements as we may require, which agreements will supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including a higher percentage Royalty Fee and Fund Contribution or expenditure requirement; provided, however, that the transferee will not be required to pay any initial franchise fee; and, if the transferee is legal entity, such of transferee's owners as we may designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
- (f) the transferee must demonstrate to our satisfaction that it meets the criteria we then consider when reviewing a prospective franchisee's application for a Franchise;
- (g) the transferee, at its expense, will renovate, modernize, and otherwise upgrade your Restaurant and, if applicable, any Restaurant delivery vehicles to conform to the then current System Standards, and will complete the upgrading and other requirements within the time period we reasonably specify;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, in the event of a franchise transfer, the transferee must enter into a written agreement with Cicis, assuming full liability for all obligations outlined in the original Franchise Agreement. If the transferee is a legal entity, each of the transferee's owners that Cicis designates must also execute this agreement, thereby jointly guaranteeing the entity's performance. This agreement must be satisfactory in form and substance to Cicis.
Additionally, the transferee must execute Cicis' then-current standard form of franchise agreement for a term ending on the original agreement's expiration date, including any renewal terms. This new agreement supersedes the original and may contain differing terms, such as higher royalty fees or fund contribution requirements. However, the transferee will not be required to pay an initial franchise fee. Again, if the transferee is a legal entity, designated owners must also execute this agreement and guarantee the entity's performance.
Furthermore, when renewing a franchise agreement, all owners must execute a general release of any and all claims against Cicis, its affiliates, and their related parties. This release covers all claims, regardless of how or when they arise. This requirement ensures that upon renewal, Cicis is protected from potential legal disputes stemming from the franchisee's prior operations or relationship with the brand.
Finally, in conjunction with securing a location, Cicis requires a Franchisee Lease Rider to be executed between the landlord and the franchisee. This rider ensures that the lease includes provisions necessary for the operation of a Cicis restaurant and that Cicis' interests are protected, such as the right to de-identify the premises after the lease expires.