What costs can Cicis charge for its management services during interim management after an owner's death or disability?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We may (but are not obligated to) assume such interim management of your Restaurant; provided that (i) our interim management of your Restaurant will not relieve you of your obligations under this Agreement; (ii) we will not be liable for any debts, losses, costs, or expenses incurred in the operation of your Restaurant during any such period of interim management; (iii) we will have the right to charge a reasonable fee for our management services, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant; and (iv) you will, and hereby do, indemnify and hold us harmless against any and all judgments, fines, losses, liabilities, costs, amounts paid in settlement, and reasonable expenses (including, but not limited to attorneys' fees) incurred in connection with our interim management of your Restaurant, except by reason of our gross negligence or willful misconduct.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a Cicis franchisee or their Managing Owner, Cicis has the option to assume interim management of the restaurant. If Cicis chooses to do so, it can charge certain fees.
Specifically, Cicis can charge a reasonable fee for its management services during this interim period. In addition to this management fee, Cicis can also charge for the direct out-of-pocket costs and expenses incurred while operating the restaurant during the interim management period.
However, it is important to note that Cicis's interim management does not relieve the franchisee of their obligations under the Franchise Agreement. Additionally, Cicis will not be liable for any debts, losses, costs, or expenses incurred during their management, unless these are a result of gross negligence or willful misconduct on Cicis's part. The franchisee also has to indemnify Cicis against any judgments, fines, losses, liabilities, costs, settlement payments, and reasonable expenses (including attorney's fees) related to their interim management, again, except in cases of gross negligence or willful misconduct by Cicis.