What is Cicis authorized to do with any special legend or endorsement on a check received from a franchisee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you will not waive or impair any right, power, or option this Agreement reserves (including our right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before its term expires) because of any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has specific rights regarding checks received from franchisees that contain special legends or endorsements. Cicis is authorized to remove any special or restrictive legend or endorsement on any check or similar item given to them by a franchisee.
This means that if a franchisee attempts to add conditions or restrictions to a payment via a legend or endorsement on a check, such as "payment in full" for a disputed amount, Cicis is not bound by that legend or endorsement. Cicis can remove it, and the check will be processed without the condition being recognized.
This clause protects Cicis from inadvertently waiving rights or settling disputes through restrictive endorsements on checks. It ensures that any waivers, compromises, or settlements must be documented separately in writing to be valid. For a prospective franchisee, this highlights the importance of addressing any disputes or disagreements with Cicis through formal written communication rather than attempting to resolve them through check endorsements, which Cicis can simply disregard.