What agreement must a transferee execute when taking over a Cicis Area Development Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Area Development Agreement – Section 5.C. | Franchise or other Agreement | You must (i) pay all amounts due us and our affiliates and third- party vendors; (ii) not be in default; (iii) provide us all information and documents we reasonably request including copies of all agreements executed in relation to transfer; (iv) execute a general release; (v) remain liable for pre-transfer obligations; (vi) pay or caused to be paid a transfer fee; and (vii) execute a non-compete agreement. Transferee must (i) meet our criteria; (ii) assume post-transfer obligations; and (iii) execute our then-standard Area Development Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–53)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a transferee taking over an Area Development Agreement must execute Cicis's then-standard Area Development Agreement. This requirement ensures that the new area developer is bound by the current terms and conditions that Cicis imposes on its developers.
In addition to executing the standard Area Development Agreement, the transferee must also meet Cicis's criteria for franchisees. This likely includes financial qualifications, business experience, and other factors that Cicis deems important for successful area developers. The transferee must also assume all post-transfer obligations, meaning they are responsible for fulfilling the duties and responsibilities outlined in the Area Development Agreement from the date of the transfer forward.
These conditions are typical in franchise agreements to maintain brand consistency and ensure that new franchisees or area developers meet the franchisor's standards. By requiring the transferee to execute the current Area Development Agreement, Cicis can update the terms and conditions as needed and ensure all developers are operating under the same agreement. This protects Cicis's interests and helps maintain a consistent brand experience for customers.