What constitutes an overdue payment to Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not entitled to withhold payments due under this Agreement on grounds of our or our affiliates' alleged or actual nonperformance under this Agreement.
Any payment or report not actually received by us on or before such date will be deemed overdue.
Time is of the essence with respect to all payments you are obligated hereunder.
All unpaid obligations under this Agreement will bear interest from the date due until paid at the rate of five percent (5%) per month or the maximum rate allowed by applicable law, whichever is less.
- H.
Electronic Fund Transfers.
Unless we notify you otherwise from time to time, all payments due to us under this Agreement will be paid via electronic funds transfer ("EFT").
You agree to sign all documents necessary to permit us to withdraw funds from your designated bank account by EFT in the amounts due under this Agreement from time to time, at the time or times that such amounts become due and payable under the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a payment is considered overdue if Cicis does not actually receive it on or before the specified due date. Cicis emphasizes that time is of the essence regarding all payment obligations outlined in the agreement.
If a payment is overdue, Cicis will charge interest on the unpaid amount from the original due date until the payment is made. The interest rate is set at five percent (5%) per month or the maximum rate allowed by applicable law, whichever is less. This interest charge is intended to compensate Cicis for the delay in receiving funds and to encourage franchisees to make timely payments.
Cicis requires all payments to be made via electronic funds transfer (EFT), unless they notify the franchisee otherwise. Franchisees must sign the necessary documents to allow Cicis to withdraw funds from their designated bank account automatically when payments are due. This system is designed to ensure that payments are received on time and to minimize the risk of late payments. Franchisees are not allowed to withhold payments based on any alleged nonperformance by Cicis.