What is the consequence if the transferor of a Cicis franchise has violated any agreement with Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you and your owners must not have violated any provision of this Agreement or any other agreement with us or our Affiliates during both the 60-day period before you requested our consent to the Transfer and the period between your request and the effective date of the Transfer;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis FDD, a transfer of franchise ownership will not be approved if the transferor has violated any agreement with Cicis or its affiliates during the 60-day period before requesting consent to the transfer, or between the request and the transfer's effective date. This requirement ensures that franchisees remain compliant with their agreements leading up to and during the transfer process.
This stipulation protects Cicis by ensuring that franchisees do not attempt to transfer their business to avoid addressing existing breaches of contract. It also maintains the integrity of the franchise system by preventing non-compliant franchisees from passing on their issues to a new owner.
For a prospective Cicis franchisee, this means maintaining strict compliance with all agreements, including franchise agreements, development agreements, and any other contracts with Cicis. Failure to do so can prevent the sale of the franchise. Franchisees should ensure they are in good standing well in advance of considering a transfer to avoid any complications.