What is the consequence if the transferor of a Cicis franchise fails to sign a general release?

The 2025 Cicis Franchise Disclosure Document outlines several conditions that must be met for a franchise transfer to be approved. One of these conditions is that the transferor (and their owners) must sign a general release, in a form satisfactory to Cicis, which releases Cicis and its affiliates from any and all claims. The FDD does not explicitly state the consequences of failing to sign this release.

However, it is implied that failure to meet all listed conditions would prevent the transfer from being approved. This means that if a transferor refuses to sign the general release, Cicis likely would not consent to the transfer of the franchise. This requirement protects Cicis from potential future legal claims by the transferor related to the franchise agreement or the operation of the restaurant prior to the transfer.

Prospective franchisees should be aware of all the conditions for transfer and ensure they are willing and able to comply with each one. It would be prudent for a potential transferor to seek legal counsel to fully understand the implications of signing a general release and to negotiate the terms of the release with Cicis if necessary. Franchisees should directly ask the franchisor about the ramifications of not signing the general release to fully understand the transfer requirements.