factual

Who must approve the interim management of a Cicis restaurant following the death or disability of the franchisee?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (2) You or your representative must promptly notify, in writing, us of your or your Managing Owner's death or permanent disability.

At our request, within a reasonable period of time not to exceed seven (7) days from the date of death or permanent disability, the executor, administrator, or other personal representative of the deceased or disabled person will provide for interim management of your Restaurant until such time as a transfer has been effected in accordance with the provisions of this Section 13.D.

Such interim management must be approved by us and must be conducted in accordance with the terms of this Agreement.

We may (but are not obligated to) assume such interim management of your Restaurant; provided that (i) our interim management of your Restaurant will not relieve you of your obligations under this Agreement; (ii) we will not be liable for any debts, losses, costs, or expenses incurred in the operation of your Restaurant during any such period of interim management; (iii) we will have the right to charge a reasonable fee for our management services, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant; and (iv) you will, and hereby do, indemnify and hold us harmless against any and all judgments, fines, losses, liabilities, costs, amounts paid in settlement, and reasonable expenses (including, but not limited to attorneys' fees) incurred in connection with our interim management of your Restaurant, except by reason of our gross negligence or willful misconduct.

Any Transfer upon death or permanent disability will be subject to the same terms and conditions as described in this Section 13 for any inter vivos Transfer.

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or their Managing Owner, Cicis must approve the interim management of the restaurant. The franchisee or their representative is required to promptly notify Cicis in writing of such an event. Within seven days of the notification, the executor, administrator, or personal representative of the deceased or disabled individual must arrange for interim management of the restaurant until a transfer of ownership can be completed. This interim management is subject to Cicis's approval and must adhere to the terms of the Franchise Agreement.

Cicis has the option, but not the obligation, to assume interim management of the restaurant. If Cicis chooses to manage the restaurant temporarily, the franchisee remains responsible for their obligations under the Franchise Agreement. Cicis will not be liable for any debts, losses, costs, or expenses incurred during their management. Cicis is entitled to charge a reasonable fee for their management services, covering both the cost of the services and any direct out-of-pocket expenses related to the restaurant's operation.

Furthermore, the franchisee is required to indemnify Cicis against any judgments, fines, losses, liabilities, costs, settlement payments, and reasonable expenses, including attorney's fees, that arise from Cicis's interim management, unless these issues are a result of Cicis's gross negligence or willful misconduct. Any transfer of the franchise due to death or permanent disability is subject to the same terms and conditions as any other transfer of ownership.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.