What criteria must a transferee meet to be approved for a Cicis Area Development Agreement transfer?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Area Development Agreement – Section 5.C. | Franchise or other Agreement | You must (i) pay all amounts due us and our affiliates and third- party vendors; (ii) not be in default; (iii) provide us all information and documents we reasonably request including copies of all agreements executed in relation to transfer; (iv) execute a general release; (v) remain liable for pre-transfer obligations; (vi) pay or caused to be paid a transfer fee; and (vii) execute a non-compete agreement. Transferee must (i) meet our criteria; (ii) assume post-transfer obligations; and (iii) execute our then-standard Area Development Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–53)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a transferee seeking approval for an Area Development Agreement transfer must meet specific criteria. The transferee must satisfy Cicis's standards and assume all post-transfer obligations. Additionally, the transferee is required to execute Cicis's then-standard Area Development Agreement.
These requirements ensure that the new area developer is qualified and committed to upholding Cicis's brand standards and operational procedures. By mandating that the transferee meet their criteria, Cicis aims to maintain consistency and quality across all its locations.
The obligation to assume post-transfer obligations means the transferee will be responsible for all duties and responsibilities outlined in the Area Development Agreement from the point of transfer forward. This includes adhering to development schedules, maintaining brand standards, and fulfilling financial obligations. Executing Cicis's current Area Development Agreement ensures that the transferee is operating under the most up-to-date terms and conditions, which may differ from the original agreement.
Prospective franchisees should carefully review these requirements and ensure that any potential transferee is fully aware of and capable of meeting these obligations. This is a critical step in the transfer process to avoid any complications or delays in securing Cicis's approval.