What must agreements among the Owners of a Cicis franchise require regarding the transfer of ownership interests?

According to the 2025 Cicis Franchise Disclosure Document, any agreements among the Owners of a Cicis franchise must require those Owners to consent to the transfer of ownership interests to Cicis or its designee. This consent is specifically required if Cicis exercises any rights of first refusal or purchase options as outlined in the Franchise Agreement. This provision ensures that Cicis retains control over who can become an owner within the franchise system, safeguarding their brand and operational standards.

This requirement is a standard practice in franchising, allowing the franchisor to maintain quality control and consistency across all franchise locations. By having the right of first refusal or purchase options, Cicis can prevent the transfer of ownership to individuals or entities that do not meet their criteria for franchisees. This helps to protect the Cicis brand and the interests of other franchisees within the system.

For a prospective Cicis franchisee, this means that if there are multiple owners of the franchise, all owners must agree to allow Cicis to buy the franchise or transfer ownership to someone Cicis designates if Cicis chooses to exercise its rights. This could impact the owners' ability to sell their franchise to a buyer of their choosing if Cicis decides to step in. Therefore, it is crucial for potential franchisees to fully understand the implications of this clause and how it might affect their exit strategy or ability to transfer ownership in the future.