Does the amendment to the New Franchise Agreement for Cicis relieve the franchisee of all obligations under Section 2 and Section 5.F of the New Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
at by their nature survive termination (such as, [Section 15 (Indemnification)]); provided, however, that because you will continue operating the Restaurant after the expiration of the Original Franchise Agreement, we waive your obligation to satisfy the post-term obligations set forth in [Section 18 (Post-Termination)] of the Original Franchise Agreement.
2. Amendment to New Franchise Agreement.
A. Development of Restaurant. You and we agree that, as of the Effective Date, all the provisions in the New Franchise Agreement that pertain to the initial development of the Restaurant, (including, without limitation, (i) identification and approval of the Location of the Restaurant and the development and opening of your Restaurant as set forth in Section 2, and (ii) our obligation to provide, and your obligation to complete, the initial training as set forth in Section 5.F.), are deemed to have been sa
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, an amendment to the New Franchise Agreement addresses obligations under Section 2 and Section 5.F. The amendment states that provisions in the New Franchise Agreement pertaining to the initial development of the restaurant are considered satisfied as of the Effective Date. This includes the identification and approval of the restaurant's location, the development and opening of the restaurant as outlined in Section 2, and Cicis's obligation to provide, and the franchisee's obligation to complete, initial training as detailed in Section 5.F.
However, this relief from obligations is specifically limited to the initial development phase of the restaurant. The franchisee is still required to comply with all obligations under the New Franchise Agreement, including Section 2 and Section 5.F, as they pertain to the ongoing operation and continuation of the restaurant.
In practical terms, this means that if a franchisee is taking over an existing Cicis restaurant, they are not required to fulfill the initial development requirements again. However, they must still adhere to all operational requirements outlined in the franchise agreement to maintain the standards and quality of the Cicis brand. This ensures consistency across all franchise locations while acknowledging that franchisees taking over existing restaurants have already met the initial development criteria.