What is the deadline for a Cicis franchisee to provide written notice of termination under the Underperforming Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Termination; Lost Revenue Damages. Provided you and your affiliates have been in Good Standing from the Effective Date and remain so during the notice period specified below, you may, at any time prior to [insert date that is the 18-month anniversary of the Effective Date], and without cause, deliver (as defined in the Franchise Agreement) a written notice to us of your election to terminate the Franchise Agreement. Termination will be effective at the close of business on the 30th day following delivery of your written notice of termination, and you will thereafter be required to comply with all obligations under the Franchise Agreement that are either triggered by or that expressly or by implication survive termination (except the obligation to pay Lost Revenue Damages under Section 16.M of the Franchise Agreement).
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- Definitions. As used in this Amendment, "Good Standing" means that you, your owners, and your affiliates (if any) are not in default of the Franchise Agreement or any other agreement with us or our affiliates; and that you, your owners, and your affiliates have substantially and timely complied with all of the terms and conditions of all such agreements, including the timely satisfaction of all monetary obligations owed to us or our affiliates.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a franchisee participating in the Underperforming Incentive Program has a specific timeframe to provide written notice of their election to terminate the Franchise Agreement. To take advantage of this provision, the franchisee must deliver written notice to Cicis at any time prior to the date that is 18 months after the Effective Date of the Underperforming Incentive Program Addendum.
The termination will then become effective 30 days following the delivery of the written notice. During this notice period, the franchisee must remain in good standing, meaning they must not be in default of the Franchise Agreement or any other agreement with Cicis or its affiliates, and they must have substantially and timely complied with all terms and conditions of such agreements, including the satisfaction of all monetary obligations.
By adhering to these conditions and deadlines, a Cicis franchisee can terminate the Franchise Agreement without cause, while still being required to fulfill obligations that are triggered by or survive the termination, except for the obligation to pay Lost Revenue Damages under Section 16.M of the Franchise Agreement.