What is the commencement date for the non-competition covenant signed by the Cicis transferor?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you (and your transferring owner(s)) (and your or their immediate family members) must sign a non-competition covenant in favor of us, commencing on the effective date of the Transfer and consistent with the post-term non-competition obligations contained in the most recent Franchise Agreement that you or your Affiliates have signed with us;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a Cicis franchisee transfers their rights, the transferring owner(s) must sign a non-competition covenant. This covenant takes effect on the effective date of the transfer.
This non-competition agreement is designed to protect Cicis by preventing the seller from immediately opening a competing business and leveraging their existing knowledge and relationships. The terms of the non-competition covenant are consistent with the post-term non-competition obligations outlined in the most recent Franchise Agreement that the franchisee or their affiliates have signed with Cicis.
Prospective franchisees should carefully review the specific terms of the non-competition covenant in the Franchise Agreement to understand the restrictions and their duration. It is important to note that the restrictions apply to the transferring owner(s) and their immediate family members, ensuring a comprehensive protection for the Cicis brand.