What is the deadline to vacate an attachment, seizure, writ, warrant, or levy on a Cicis restaurant to avoid termination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you (or any of your owners) file a petition in bankruptcy or a petition in bankruptcy is filed against you; you make an assignment for the benefit of creditors or admit in writing your insolvency or inability to pay your debts generally as they become due; you consent to the appointment of a receiver, trustee, or liquidator of all or the substantial part of your property; any of your or your Affiliates' Restaurants are attached, seized, subjected to a writ or distress warrant, or levied upon, unless the attachment, seizure, writ, warrant, or levy is vacated within 30 days; or any order appointing a receiver, trustee, or liquidator of your or your Affiliates' Restaurants are not vacated within 30 days following the order's entry;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a franchisee has 30 days to vacate any attachment, seizure, writ, distress warrant, or levy on their restaurant. If such actions are not vacated within this 30-day period, Cicis has grounds to terminate the franchise agreement. This clause also applies to orders appointing a receiver, trustee, or liquidator, which must also be vacated within 30 days of the order's entry to avoid potential termination.
This provision protects Cicis from potential financial instability or legal issues affecting a franchisee's restaurant. By setting a 30-day deadline, Cicis ensures that franchisees address these issues promptly. Failure to do so can be interpreted as a sign of financial distress or mismanagement, which could negatively impact the Cicis brand and system.
For a prospective franchisee, this means maintaining diligent oversight of their restaurant's financial and legal standing. It's crucial to have systems in place to quickly identify and address any attachments, seizures, or legal actions. The 30-day window is relatively short, so franchisees must be proactive in resolving such issues to avoid jeopardizing their franchise agreement with Cicis.