What are the consequences if a Cicis franchisee fails to maintain a qualified Managing Owner?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Operator) must devote his or her full-time best efforts to the supervision of your Restaurant's operation and, with our consent, to the supervision of other Cicis Restaurants owned by you or your affiliate(s) and operated pursuant to franchise agreement(s) with us. Neither the Managing Owner nor the Operator will engage in any other business or activity that may conflict with your obligations under this Agreement or any other agreement with us or our affiliates.
- (5) You must, at all times, keep us informed as to the identity of the persons serving as your Managing Owner and your Operator. If your relationship with the Managing Owner terminates or
materially changes, you must promptly designate a qualified replacement and must notify us within five (5) business days of any change. Any successor or replacement Managing Owner and Operator must complete our initial training program within a reasonable period of time after his or her appointment. If we, in our sole judgment, determine that your Restaurant is not supervised by a properly trained and qualified Managing Owner and/or Operator, we will notify you, and you must take appropriate corrective measures within a reasonable period of time, not to exceed 60 days from the date of the notice.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees must designate and maintain a qualified Managing Owner. The Managing Owner is responsible for supervising the franchisee's activities under the Franchise Agreement. If the relationship with the Managing Owner terminates or materially changes, the franchisee must promptly designate a qualified replacement and notify Cicis within five business days of any change.
If Cicis determines that a restaurant is not supervised by a properly trained and qualified Managing Owner, they will notify the franchisee. The franchisee must then take appropriate corrective measures within a reasonable period, not exceeding 60 days from the date of the notice. During this time, the franchisee must provide interim supervision of the restaurant, approved in writing by Cicis.
Failure to maintain a qualified, approved, and trained Managing Owner, Operator, General Manager, or Assistant Manager as required by the agreement is grounds for default. According to the FDD, failure to timely designate, maintain, and staff the restaurant with qualified personnel constitutes a breach of the franchise agreement. This breach can lead to Cicis terminating the agreement, as detailed in Section 15.A.(2)(e).