What are the consequences for a Cicis franchisee who attempts a transfer without complying with Section 5 of the Development Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
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- you (or any of your owners) make or attempt to make a Transfer without complying with the requirements of Section 5;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee attempts to transfer their rights or ownership interest without following the requirements outlined in Section 5 of the Development Agreement, it constitutes a material breach of the agreement.
Specifically, any transfer made without Cicis's prior written approval is considered a material breach and will have no legal effect. This means the transfer will not be recognized, and the franchisee will still be bound by the terms of the Development Agreement.
In addition to the transfer being ineffective, Cicis also has the right to terminate the Development Agreement if a franchisee attempts a transfer without complying with Section 5. This could result in the franchisee losing their development rights and any fees paid to Cicis. This provision underscores the importance Cicis places on controlling who becomes a franchisee and ensuring they meet the company's standards.