What is the deadline for the landlord to deliver a Non-Disturbance Agreement to a Cicis franchisee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord must obtain and deliver to Tenant within thirty (30) days after the Lease Execution Date an agreement ("Non-Disturbance Agreement") with the holder of any existing mortgage, deed of trust, ground lease or other security instrument (any one or more, an "Encumbrance") affecting the Shopping Center, in a form reasonably satisfactory to Tenant containing the following provisions (the "Non-Disturbance Provisions"): (i) the Lease and Tenant's rights under the Lease will not be disturbed by any foreclosure or termination action so long as Tenant is not in default under the Lease beyond all applicable notice and opportunity to cure periods; (ii) Tenant will not be joined in any foreclosure or termination action related to the Encumbrance; and (iii) the Lease will automatically become a direct lease between any successor to Landlord's interest, as landlord, and Tenant.
In addition, the Lease will not become subordinate to any subsequent Encumbrance affecting the Shopping Center unless and until Landlord obtains from the holder of the Encumbrance an agreement containing the Non-Disturbance Provisions.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the landlord must provide the Non-Disturbance Agreement to the tenant within 30 days after the Lease Execution Date. This agreement protects the franchisee (tenant) by ensuring that their lease rights will not be affected if the property owner faces foreclosure or other actions.
The Non-Disturbance Agreement must include provisions that ensure the Cicis franchisee's lease remains valid as long as they are not in default, that the franchisee will not be involved in any foreclosure or termination actions related to any encumbrance, and that the lease will automatically transfer to any successor landlord. This agreement is crucial for protecting the franchisee's investment and business operations.
Furthermore, the lease cannot be subordinate to any future encumbrance affecting the shopping center unless the holder of the encumbrance provides an agreement containing the Non-Disturbance Provisions. This clause provides an additional layer of security for the Cicis franchisee, ensuring their lease rights are prioritized even if the property owner takes on new debt or obligations.