What is the condition of the previous franchise agreement that governed the operation of the Cicis Restaurant being reopened?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
OGRAM ADDENDUM**
(Franchise Agreement)
REOPEN INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
On Smile LLC ("we"), the "Franchisee" identified below ("you"), and your owners who have guaranteed your performance under the Franchise Agreement (collectively, the "Guarantors" and, together with us and you, the "Parties") execute this Reopen Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement identified on Attachment A hereto (as it might have previously been amended, the "Franchise Agreement"). The Effective Date of this Addendum is the date on which we sign below. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
-
- Restaurant History. The Restaurant identified in the Franchise Agreement was formerly operated as a Cicis Restaurant by you, your affiliate, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
-
- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a Cicis Restaurant is being reopened, the franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. A new Franchise Agreement is then entered into between Cicis and the franchisee to govern the ownership and operation of the previously closed Restaurant from and after the Effective Date of the new agreement.
Prior to reopening the Restaurant, the franchisee must take actions to remodel and refresh the Restaurant at their own expense. These actions are described in Attachment A of the Franchise Agreement and are referred to as the Refresh Obligations. The franchisee must complete these Refresh Obligations and reopen the Restaurant for regular business by no later than the Reopening Deadline, which is also shown on Attachment A.
Provided the franchisee and their affiliates remain in good standing, the initial franchise fee due under the new Franchise Agreement will be reduced to $5,000. Cicis reserves the right to revoke this reduction if the franchisee ceases to be in good standing, in which case the franchisee will be required to pay the full initial franchise fee as required under the Franchise Agreement. Good standing means that the franchisee and their affiliates are in compliance with all material obligations under the Franchise Agreement and all other agreements between them and Cicis. Cicis has sole discretion to determine whether particular obligations are material for purposes of determining good standing, and their decision will be final.