What is the deadline for a Cicis developer to provide the quarterly financial statements?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree, during the Term, to maintain records regarding your activities in connection with the exercise of the Development Rights and to provide us with the following records and reports:
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- within 10 days after the end of each month during the Term, you must send us a report of your business activities during that month, including information about your efforts to find sites for Restaurants in the Development Area and the status of development and projected opening for each Restaurant under development in the Development Area;
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- within 30 days after the end of each calendar quarter, you must provide us with a balance sheet and profit and loss statement for you and your Affiliates covering that quarter and the year-to-date, and an updated balance sheet for each person or entity signing the Guaranty; and
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- such other data, reports, information, financial statements, and supporting records as we request from time to time.
If you fail to submit, the foregoing information or report required by us we may, after first providing written notice and a reasonable opportunity to cure (which need not exceed 10 days), assess a reasonable data collection fee for so long as the information or report remains outstanding. Our assessment and collection of the data collection fee will be in addition to all other rights and remedies we have.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a developer must provide the company with financial statements within 30 days after the end of each calendar quarter. These statements include a balance sheet and profit and loss statement covering that quarter and the year-to-date for both the developer and their affiliates. Additionally, an updated balance sheet for each person or entity signing the Guaranty is required.
This requirement ensures that Cicis has access to the developer's financial health and performance, allowing them to monitor the developer's ability to meet their obligations under the development agreement. It also allows Cicis to assess the overall financial stability of the development project and make informed decisions regarding ongoing support and expansion.
Failure to submit the required information may result in Cicis providing written notice and an opportunity to cure, which need not exceed 10 days. If the information is not provided within the cure period, Cicis may assess a reasonable data collection fee until the information is submitted. This fee is in addition to any other rights and remedies Cicis may have under the agreement.