What is the deadline for closing the purchase of Option Assets for a Cicis franchise, and what is the exception?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) The time for closing of the purchase of the Option Assets will be a date not later than 30 days after the purchase price is determined as described above unless the parties mutually agree to designate another date; provide, however, that if the Option Assets include only the premises lease and/or equipment leases, the time for closing on the assignment of those leases will be a date no later than 10 days after delivery of our Option Notice.
Closing will take place at our corporate offices or at such other location as the parties may agree.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the closing date for purchasing Option Assets must occur no later than 30 days after the purchase price is determined. However, there is an exception: if the Option Assets consist only of the premises lease and/or equipment leases, the closing date for assigning those leases is shortened to no more than 10 days after Cicis delivers the Option Notice.
This means that a Cicis franchisee needs to be prepared to finalize the transfer of assets relatively quickly once the purchase price has been established. The standard 30-day window provides some time to organize the necessary paperwork and funds. However, if the assets are limited to leases, the 10-day timeframe requires even faster action.
It is important for prospective Cicis franchisees to understand these timelines, as delays in closing could potentially lead to complications or even the loss of the opportunity to acquire the assets. Franchisees should ensure they have the necessary resources and legal support to meet these deadlines, especially when leases are involved. The closing will take place at Cicis's corporate offices or another agreed-upon location.