What are the consequences if a Cicis franchisee closes the restaurant for business?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Premises may be used only for the purpose of operating a CiCi's restaurant, with the ancillary carry-out food service, curbside pickup and use of video games and vending machines and for no other purpose. Franchisee may operate CiCi's Restaurants at any other location without Landlord's approval.
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- Franchisor, its personnel or agents, for a period of up to thirty (30) days after the expiration or sooner termination of the Lease or the Franchise Agreement, may enter the Premises for itself or on behalf of Franchisee to de-identify the Premises as a Restaurant, which may include the removal of signs, decor and materials displaying any marks, designs or logos owned by Franchisor or its affiliates. This right includes the right to remove exterior signs and awnings from the Premises and any Shopping Center pylon or monument sign, interior signs, decor items, and materials displaying any marks, designs, or logos owned by Franchisor and all other items identifying the Premises as a Cicis Restaurant. In addition, Franchisor may make such other modifications (such as repainting) as are reasonably necessary to protect the Cicis system signs, marks, and intellectual property rights.
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- If Franchisee has an obligation to continuously operate its business at the Premises, Franchisee may cease operating for up to sixty (60) days, from time to time, to perform repairs, enhancements or renovations, as required by the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a franchisee may temporarily cease operations for up to 60 days to perform repairs, enhancements, or renovations, as required by the Franchise Agreement. This allowance provides some flexibility for franchisees to maintain and improve their restaurants without penalty. However, the FDD does not explicitly detail the consequences of closing the restaurant for business outside of this allowance.
However, the lease agreement between the franchisee and the landlord includes a clause that the premises may only be used for operating a Cicis restaurant. This clause suggests that ceasing operations could be a violation of the lease, potentially leading to eviction or other legal repercussions from the landlord. Additionally, Cicis retains the right to enter the premises after the termination of the lease or franchise agreement to de-identify the location as a Cicis restaurant, which includes removing signs and decor.
Given the lack of specific information regarding the consequences of unauthorized closures, prospective franchisees should seek clarification from Cicis regarding the penalties or repercussions for ceasing operations beyond the allowed 60-day period for renovations. Understanding these potential consequences is crucial for making informed decisions about managing and operating a Cicis franchise.