What is the definition of 'Interest' and 'Interests' in the Cicis franchise agreement?

According to the 2025 Cicis Franchise Disclosure Document, an "ownership interest" is defined as the percentage of voting shares or other voting rights that results from dividing 100% of the ownership interests by the number of owners. This definition is important for determining the rights and responsibilities of each owner within the franchise.

For a prospective Cicis franchisee, understanding this definition is crucial because it clarifies how decision-making power is distributed among the owners. If there are multiple owners, the percentage of ownership interest directly correlates to the influence each owner has on the business's operations and strategic direction. This can impact everything from day-to-day management to long-term investment decisions.

The franchise agreement also stipulates that the Managing Owner's interest in the franchisee entity must remain free of any pledges, mortgages, liens, charges, encumbrances, voting agreements, proxies, security interests, or purchase rights or options, unless otherwise provided in the agreement. This provision aims to protect the integrity of the ownership structure and ensure that the Managing Owner's focus remains on the effective operation of the Cicis Restaurant. This requirement helps maintain stability and prevents external parties from unduly influencing the management of the franchise.

In summary, the definition of "ownership interest" and the restrictions placed on the Managing Owner's interest are designed to ensure a clear and stable ownership structure for each Cicis franchise, promoting effective management and decision-making.