What costs is a Cicis franchisee responsible for paying if Cicis incurs them due to a franchisee's default?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ny reproduction, counterfeit, copy, or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake, or deception, or which is likely to dilute our or our affiliates' rights in and to the Marks, and you must not utilize any designation of origin, description, or representation which falsely suggests or represents an association or connection with us constituting unfair competition.
- E. Pay Amounts Owed. You must promptly pay all sums owing to us and our subsidiaries or affiliates, including all damages, costs, and expenses, including reasonable attorneys' fees, we incur as a result of any default by you, which obligation will give rise to and remain, until paid in full, a lien in our favor against any and all of the personal property, furnishings, equipment, signs, fixtures, and inventory owned by you and on the premises operated hereunder at the time of default.
- F. Enforcement Costs.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee defaults on their agreement, they are responsible for specific costs incurred by Cicis as a result of that default. These costs include all sums owed to Cicis, its subsidiaries, and affiliates, covering damages, costs, expenses, and reasonable attorneys' fees. This obligation creates a lien in Cicis's favor against the franchisee's personal property, furnishings, equipment, signs, fixtures, and inventory located at the premises at the time of the default.
Additionally, if a franchisee fails to promptly remove Cicis's branding and de-identify the restaurant according to the System Standards after termination, Cicis has the right to correct this deficiency. The franchisee must then reimburse Cicis for all costs incurred in rectifying the de-identification. This includes the scenario where Cicis has to enter the premises to make the necessary changes themselves due to the franchisee's failure or refusal to comply with these post-termination requirements.
These financial responsibilities are significant for a prospective Cicis franchisee. It highlights the importance of adhering to the franchise agreement and fulfilling all obligations to avoid default. The lien provision means Cicis can claim the franchisee's assets to cover outstanding debts. Furthermore, the responsibility for de-identification costs ensures that franchisees understand their obligations even after the agreement ends, and that failure to meet these obligations can result in additional expenses.